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Patty Hirsch, a senior editor at Marketplace, discusses factoring, a financing method for small businesses. CIT, a major lender and factor, has raised concerns due to potential financial implications. Factoring involves a relationship between a small business owner, like shoemaker Sam, and a client, like Nordstrom. Sam sells 20 pairs of trendy shoes to Nordstrom each month and receives payment, ensuring a steady cash flow for his business.
