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Patty Hirsch, a senior editor at Marketplace, discusses factoring as a financing method for small businesses, focusing on its recent relevance due to CIT's potential impact. She explains how factoring works through an example of a small business owner named Sam, a shoemaker who sells his trendy shoes to Nordstrom. Sam sells 20 pairs of shoes to Nordstrom each month and ships them off at the end of the month.
