both are same. A company can be a holder of AR or notes receivable. Following is the detailed explanation of factoring of AR and discounting of notes receivable:

Factoring

It is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.

The three parties directly involved are: the one who sells the receivable, the debtor, and the factor.

Thus, factoring without recourse is where the person/company who sells the invoice to the factor and the factor bears all the risk for collection of the invoice. Thus, the one who sells the receivable has made a valid sale and he doesn’t bear the risk of loss if debtor defaults on payment. Factor bears that loss.

Discounting Notes Receivable

A holder of a note who needs cash before the note matures may take the note to a bank or other financial institution, which discounts it. Discounting a note receivable means simply that the bank "buys" the note from the holder, paying the holder an amount of cash that is normally less than the maturity value of the note, and then collects the maturity value from the maker at the maturity date.

What happens if the maker of the note fails to pay the bank at maturity? If the note was discounted without recourse, the bank is stuck with the loss, that is, original holder is not liable for the default of the maker of the note.