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Patty Hirsch, senior editor of Marketplace, discusses factoring, a financing method for small businesses. CIT's recent news has raised concerns about financing shortages. Factoring involves a small business owner (Sam) selling goods to a client (Nordstrom) who pays for the products. If the lender CIT goes out of business, small businesses may face financial risks. Sam, a shoemaker, sells 20 pairs of shoes monthly to Nordstrom, his sole client, with payment at the end of each month.