It's legal so long as:1) You did not lie (commit fraud) on the application for the credit, such as about your intentions, the use to which you'd put the line of credits or the products you acquired by it, etc.2) You did not violate any terms of the line of credit agreement (such as in regards to how or for what you'd sell the goods, or having to keep some reserve available).3) If there was a security interest in the goods, you did not violate any terms of the instrument creating the security interest.If you only told the truth and didn't violate any written agreements, this is legal.