What is the difference between pledging accounts receivable to secure a loan and factoring accounts$$ receivable?

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Part $1$

$($Select the best choice$$ below.$)$

A$.$

Both$$ short$-$term financing alternatives are the same. The only different is that pledging accounts receivable to secure a loan is less expensive than factoring accounts receivable.

B$.$

When accounts receivable are$$ pledged, the borrowing firm is selling its accounts receivable to the lending corporation. In a factoring$$ arrangement, the accounts receivable are used as collateral for a$$ loan, and the$$ firm's customers typically make their payments directly to the lender.

C$.$

When accounts receivable are$$ pledged, the borrowing firm is simply using its accounts receivable as collateral for a loan. In a factoring$$ arrangement, the accounts receivable are sold to the lender$($i$.$e$.,$ factor$),$ and the$$ firm's customers typically make their payments directly to the lender.