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Patty Hirsch, a senior editor of Marketplace, discusses factoring, a financing method used by small businesses. CIT, a major lender and factor, has been in the news due to concerns about its potential impact on businesses if it goes out of business. Hirsch explains the relationship between a small business owner like Sam, who makes trendy shoes for Nordstrom. Sam ships 20 pairs of shoes to Nordstrom each month, who pays him for the shoes.
