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Patty Hirsch, a senior editor at Marketplace, discusses factoring as a financing method for small businesses. CIT, a major lender and factor, has been in the news recently. Factoring involves a small business owner (e.g. shoemaker Sam) providing goods to a client (e.g. Nordstrom) who then pays for them at the end of the month. This process helps small businesses obtain the financing they need to continue operations.
