How To Set And Maintain Credit Line

President of Adams, Evens & Ross (AER) Wilson Cole talking today about setting and maintaining credit lines. As he has expressed before, think of setting up credit lines as if they were credit cards. If credit card company will give you credit, they may say it’s unlimited, but it’s based on ability to pay back/creditworthiness. Base credit line on creditworthiness and not the degree of their need of your services. Separate client companies into different classes. Class A companies would be big/publicly traded companies, such as Coca Cola, who would typically never have a credit problem, though they may have temporary cash flow issues.