Worldwide, factoring is by far the most common method of cash flow finance used by companies operating on a B2B (Business to Business) basis. It is used to solve the working capital shortfalls that occur when a business owner grants extended terms of payment to customers. Although not at all limited in its uses, factoring is so commonly used to eliminate payroll and payroll tax worries it is often simply referred to as “Payroll Financing”. Factoring addresses the problems caused by slow paying customers and is a powerful source of growth capital for employee intensive businesses such as staffing, janitorial companies, guard / security services, construction sub-contractors, and many others.