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/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. (GE is also very active in the factoring industry as a supplier of funds).
