Payroll factoring is another way to describe invoice factoring. It’s a method of financing that entails the sale of outstanding invoices, at a discount, to a factoring company in exchange for instant access to cash.
It’s referred to as payroll factoring because many times a business will struggle to pay its workers without a steady cash flow. Invoice factoring, or payroll factoring, provides a steady stream of revenue with the cash that you are already owed.