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The article touches on why the draw is significant irrespective of paying it back (albeit the source of the commentary is from the same parent company): > “Com
by bhahn 7y ago
The article touches on why the draw is significant irrespective of paying it back (albeit the source of the commentary is from the same parent company):
> “Companies don’t tap their credit line unless they need to,” said David Ritter, an analyst at Bloomberg Intelligence, who spoke generally about the issue without commenting directly on Robinhood. When companies do, it’s “perhaps not a good signal with regard to their cash burn, which could make creditors nervous.”
- JumpCrisscross 7y agoRevolving credit lines are usually revocable. Depending on what Robinhood drew the cash for, and the degree to which they have liquidity-source redundancy, it could imply their having been closer to an edge than was apparent.