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hi my name is patty Hirsch I'm a senior editor of marketplace today I want to talk about factoring it's a kind of financing method used by small businesses and it's been in the news a lot recently because of a company called CIT it's a lender and a big factor and people are worried some businesses are worried that if it goes out of business it could leave them short of the financing that they need so how does factoring work alright let's begin to spell that out for you well for starters let's start with them the relationship between a small business owner and his curse and his client okay so here we are my small business owners name is Sam okay and he is a shoemaker he makes these very trendy shoes Wendy shoes and he cranks out about 20 pairs of the issues a to because these shoes a month he's got one client which is a Nordstrom's okay and Nordstrom buys all 20 pairs every single month so at the end of every month Sam boxes up with 20 pairs of shoes ship them off to Nordstrom 20 shoes...