California Grapes International, Inc (CAGR)

[StockLife]

That's completely correct, I work in the banking industry and I see this all the time. Businesses to take out lines of credit when business is good to keep up with the orders that they are receiving to make up for the capital that they don't have at the moment, whether it would be for a new factory, inventory, etc. Once the product has been delivered then the company will make back the money needed to pay for the LOC + any interest which has accumulated within the LOC for the amount borrowed.