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According to TheOfficeGuide.com

Paper Folder Reviews

Paper folders are used to automate the tedious task of folding your papers.  They require much less time and produce neater results.  In addition, paper folders are able to create many sizes and styles of folded documents that are ready to be inserted into envelopes.  Paper folders come in two main varieties: friction folders and vacuum folders.

Friction Paper Folders

Friction paper folders are the most common and use rollers to feed sheets of paper through the machine.  They are capable of automatically feeding sheets and can be customized to various fold styles.

Vacuum Paper Folders

Vacuum paper folder, also called air-feed folders, are generally larger and more expensive than friction folders.  They use compressed air to lift the sheets of paper and push them through the folder. Air feed folders are fast and effective and work well for glossy materials.

Features to look for when choosing a paper folder:

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Paper Handling
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Paper Cutters

Paper Trimmers

Paper Punches / Hole Punches

Paper Drills

Paper Folders

Booklet Makers

Bursters

Collators

Paper Joggers