That's exactly my point. They can't just shut the tap off, so the cash has to go.. to the customers. That the tap flows so freely is a good thing.
The complaint is "they only have 0.3 of a quarter operating funds left"
Which, yes, if they were running a factory it would be a problem. But their product IS their money. And it's in demand. How is this bad? As you said, they can't shut the tap off...
Do not forget that they have revenue expected of somewhere in the vicinity of 2.5 million in the next month, around 3 million the following. The loans *are* their cash and they're being held by customers, temporarily. They're a lending business!
So let me reframe the scenario in this way - if they had performed just as well this quarter as in December, and given 6 million in loans, they'd have 10 million in cash. How would this look better for the company, exactly? They could tighten their lending criteria even more to limit loans, but the consequence of doing that would be a slowing down of their business momentum.
How would they report that to shareholders? "Despite our lending criteria demonstrably being very conservative with only 0.6% bad debt, as we don't have much money we've decided to make them even more conservative so we have more money in our hand"?
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