MadeinTaiwan said “This is how many many companies make payroll and pay creditors.”
I would personally call this a bad practice. If a company is handling its cashflow that close to the wire, they are either mismanaging things are playing a pretty risky game to greedily try to squeeze a little more profit out. This is the equivalent of me depleting my bank account on beer right before rent is due, withdrawing cash on my credit card to pay rent, then when payday hits a few days later paying off my credit card. When a single person does this, we call it irresponsible. When a company does, well, that’s just the way business is done. It strikes me as a double standard.