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Because they lose money and need to borrow more? But in any case, regardless of why they have it, whether they keep expanding or not: they need to pay back that
by mhermher 9y ago
Because they lose money and need to borrow more? But in any case, regardless of why they have it, whether they keep expanding or not: they need to pay back that debt and they won't have the money for it. It's as simple as that. Does that make sense? So no, they can't survive if they stop expanding. The only way to survive is to either be profitable within the year or raise more capital.