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Patty Hirsch, a senior editor of Marketplace, discusses factoring, a financing method for small businesses. CIT, a company, is a major factor causing concern as some worry about potential funding shortages if it fails. Factoring involves the relationship between a small business owner, like Sam the shoemaker, and his client, Nordstrom, who buys all his shoes each month. Sam ships 20 pairs of shoes to Nordstrom regularly.
