for factoring companies. Because of the risks and exposure from mechanics' liens, danger of "paid-when-paid" terms, existence of progress billing, use of withholding, and exposure to economic cycles most "generalist" factoring companies avoid construction receivables entirely. That has created another niche of factoring companies that specialize in construction receivables. Haulage Factoring is often used by haulage companies to cover upfront expenses, such as fuel. Factoring companies that cater to this niche offer services to help accommodate drivers on the road, including the ability to verify invoices and fund on copies sent via scan, fax or email, and the option to place the funds directly onto a fuel card, which works like a debit card. Haulage factors also offer fuel advance programs that provide a cash advance to carriers upon confirmed pickup of the load. Recruitment In the recruitment sector factoring is an effective solution, often used by temporary recruitment agencies who must ensure that their business has the available funds each week to make payment to the workers they have placed. Specialist funding marketplaces like Raise enable Recruitment businesses to access the best funding options that they need to grow their agency. Invoice payers (debtors) Large firms and organizations such as governments usually have specialized processes to deal with one aspect of factoring, redirection of payment to the factor following receipt of notification from the third party (i.e., the factor) to whom they will make the payment. Many but not all in such organizations are knowledgeable about the use of factoring by small firms and clearly distinguish between its use by small rapidly growing firms and turnarounds. Distinguishing between assignment of the responsibility to perform the work and the assignment of funds to the factor is central to the customer or debtor's processes. Firms have purchased from a supplier for a reason and thus insist on that firm fulfilling the work commitment. Once the work has been performed, however, it is a matter of indifference who is paid. For example, General Electric has clear processes to be followed which distinguish between their work and payment sensitivities. Contracts direct with the US government require an assignment of claims, which is an amendment to the contract allowing for payments to third parties (factors). Risks Risks to a factor include: Counter-party credit risk related to clients and risk-covered debtors. Risk-covered debtors can be reinsured, which limit the risks of a factor. Trade receivables