Recourse factoring distinguishes itself from non-recourse factoring by placing the onus on the client to repurchase the invoices if the debtor defaults on payment. This shared risk model allows for more flexible terms and lower factoring fees, making it an attractive option for businesses looking to optimize their cash flow without incurring exorbitant costs. 

Non-recourse factoring distinguishes itself by transferring the credit risk of non-payment from the client (seller of invoices) to the factor (financing company). In essence, once the factor purchases the receivables, they assume the responsibility for collecting payment. If the debtor defaults, the client is not liable for the repayment. This model gives businesses higher financial security, allowing them to offload credit risk and focus on their core operations. 

Reverse factoring, also known as supply chain finance, is a strategic financial solution that enables businesses to optimize cash flow by improving the payment terms between buyers and suppliers. In reverse factoring, a financing entity, often a bank or a factor, facilitates early payments to suppliers on behalf of the buyer. This process allows suppliers to receive payment sooner than the agreed-upon payment terms, enhancing their cash flow, while the buyer extends their payment terms, effectively optimizing working capital. 

In the realm of factoring, a loan or credit line refers to a financing arrangement where a factoring company extends a line of credit to its clients based on their accounts receivable. This credit line allows clients to access funds against their outstanding invoices, providing them with immediate working capital to meet business needs while waiting for customer payment. It bridges the gap between invoice issuance and payment receipt, empowering businesses with greater financial flexibility.