

What you’re misrepresenting is that its not the millions dollars that is supposed to pay the debt, its the revenue you get after investing that million dollars into the company.
You’re claiming it makes sense for the company to invest a large portion of that revenue in growing the company when the revenue is not even enough to pay back the interest from the bank?
Wait, doesn’t that sounds familiar? That’s basically how they run companies under a venture capital model. Who cares about negative profit as long as you continue growing, baby. I guess you really like how Silicon Valley startups run their business.
There’s not much difference, but we can still agree that the example you gave are not exactly a sustainable way to grow, right?