A security granted over debtors in support of a loan creates an interest in the debtors, but this is different to the interest created via assignment.
Assuming the assignment is effective the interest created by the assignment of the debts to a factor/discounter effectively transfers ownership of those debts to the factor/discounter so they are no longer assets of the client.
If debts have been effectively assigned by a client, the assignee’s interest is not subject to other claims against the assets of the business (e.g. employee entitlements). This enhanced security position and the fact that funding is linked to a closely monitored and continually assessed pool of debts, enable factors and discounters to prudently provide a higher level of funding to clients, as compared to overdraft and commercial bill funding arrangements.