1. Risk and safety: loans are more risky than discounts. This is because when the borrower can't repay the loan, the bank or lending institution will take compulsory measures, such as taking back the collateral or auctioning the assets. Discounting is safe because it is based on the future cash flow of bills. If the bill is in breach of contract, the discounter can recourse against the holder.

2. Liquidity and term of funds: The loan term is longer, which can meet the borrower's long-term capital demand. Discounts are made in a short period of time, from a few months to a year. In addition, the discount needs enough bills to support it, which means that the liquidity of funds is limited. Loans are flexible and can be customized according to the borrower's needs and credit status.