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The video tutorial discusses factoring, a financing method used by small businesses. It mentions the concern over a company called CIT, a lender and big factor, potentially going out of business. The relationship between a small business owner named Sam, who makes trendy shoes, and his client Nordstrom is used as an example to explain how factoring works. Sam sells 20 pairs of shoes to Nordstrom every month and at the end of the month, he ships them off to Nordstrom.
