In early 2008, Doc and Lyn McGee formed the McGee Cake Company. Doc did all the baking, and Lyn handled marketing and distribution. Because of increased sales, Doc left his other job, and Lyn followed shortly. The company hired additional workers to meet demand, but the fast growth led to cash-flow and capacity problems. Doc and Lyn approached a local bank for short-term financial help. What is the nature of the financial problem that Doc and Lyn are facing?

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