A stated fact: when pclt receives an order for one

A stated fact: when pclt receives an order for one of there units they also require 50% payment up front. In turn as a tool (cost of doing business) they borrow the other 50% to produce the unit AND have a plan to retire that debt within months….THIS IS NOT TOXIC DEBT
“Any debt could potentially be considered toxic if it imposes harm onto the financial position of the holder”
Toxic Debt
By ADAM HAYES
Updated Nov 12, 2019
What Is Toxic Debt?
Toxic debt refers to loans and other types of debt that have a low chance of being repaid with interest. Toxic debt is toxic to the person or institution that lent the money and should be receiving the payments with interest. Toxic debt generally exhibits one of the following criteria:
• Default rates for the particular type of debt are in the double digits
• More debt is accumulated than what can comfortably be paid back by the debtor
• The interest rates of the obligation are subject to discretionary changes
Any debt could potentially be considered toxic if it imposes harm onto the financial position of the holder.

KEY TAKEAWAYS
• Toxic debt refers to debts that are unlikely to be paid back in part or in full, and therefore are at high risk of default.
• These loans are toxic to the lender since chances for recovery of funds are small and will likely have to be written off as a loss.
• During the 2008 financial crisis, many bad debts were packaged into asset-backed securities that became known as toxic assets, which were difficult to dispose of and highly illiquid.


https://www.investopedia.com/terms/t/toxic-debt.asp