Depends. If your income comes in 90 days post invoice, but you pay monthly then borrowing some money to smooth over cash flow makes loads of sense. If you need to buy loads of stuff to sell, it also makes sense. Software businesses are pretty weird in the lack of capital costs.

An alternative to borrowing to achieve that smooth cash flow is treasury savings.

Being able to is actually a green flag. Banks wouldn't keep lending it if the companies didn't pay it back. This isn't VC we're talking about here.

Interesting, I can see this as lending implies some due diligence into a companies financials. At the same time, at the personal level, I know I can get lines of credit that would be very tough for me to pay back. Is corporate borrowing much more stringent?

Remember how in 2008 the entire world was about to grind to a halt because credit markets were freezing up? This is why. It's the norm because mismatches between when bills are due and the money to pay them comes in are common. It's similar in function to payday lending, but the terms are better, and it's not done under duress. Businesses routinely take out loans to make payroll while they wait for all the money they made from the work done, for example.