I have a question to which I haven't been able to get a good answer.

Okay...I'm a business owner. I have ten employees (or ten thousand, doesn't matter). I have to pay those employees a certain amount (including benefits), an amount which is well known to me. Now, I always thought that I would figure that amount and others (electricity, materials, etc.) into what I charged for my product, so that the price = my costs + a reasonable profit.

Now I hear that without credit employers can't pay their employees. When did it happen that a well-run business borrowed money for wages, salaries, benefits, etc. instead of having that money on hand and in the bank?

I'm talking about normal operations here, not after a disaster or a start-up company or temporary cash flow problems or something.