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Australian company Greensill that is involved in this area of finance has just become insolvent. They had Softbank backing.

And? Banks have become insolvent too; doesn't say much about the viability of banking.

Huh, I'd previously thought that transfer of risk was an integral component of factoring, but apparently not:

> If the factoring transfers the receivable "without recourse", the factor (purchaser of the receivable) must bear the loss if the account debtor does not pay the invoice amount.[1] If the factoring transfers the receivable "with recourse", the factor has the right to collect the unpaid invoice amount from the transferor (seller).

Different terms and conditions on the contract will lead to different fees and discounts, etc.

Even in a scenario where the transfer specified "with recourse" there is no guarantee that the seller will still be solvent so there is a risk to the purchaser.

It's slightly different. It's securitization of a cash flow.

So a payday loan with a fancy name?

No? Again: factoring.