The only reason you could hope that this is the case is that it is to be used only for very short term (think a week or less) lending to allow large orders to be completed generating a sizable profit. Assuming this will be used once or twice until the company has money in the bank from previous sales to stump up the cash it self.
Setting up, maintaining and closing unsecured lines of credits can be extreemely costly in terms of flat fees. My hope here is that we are not getting charged these fees due to the higher than normal interest rate and we will not need to use it much if at all.
Would be good to have an update from the company clarifying this though as previous deals that have been done have seemed to lack some basic business acumen.
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