This depends on the way the cash flows into the co-op, and could also be a function of the demographic make-up of the board and members. In general, a line of credit would be used in instances where receivables are going to be collected in the reasonably near future, but certain bills are due now. Since such lines are typically "short-term" in nature, any such borrowings would be paid back when the receivable is collected.
Sometimes, however, when there are older people with limited incomes are on the board, they choose to borrow money (usually with a mortgage, not a line of credit) rather than fork out cash upfront. The net effect of this kind of decision is to push the payments onto members who might join in the future.
If you have a certain set of financials you'd like me to read and opine on -- as long as you understand that my opinion is nothing more than that -- please let me know.
Lic. R. E. Salesperson
Beaudoin Realty Group, Inc.
78-27 37th Ave., Suite 5