Should you have a standby line of credit in place?

The recent Medicare payment scare that put fear in to the souls of physician practices, along with continued variations in the timing of payer reimbursement, reminds me to remind you that having a standby line of credit is not a bad idea. Whether you ever have to draw on it or not, at least it's in place in case of a cash flow emergency. It doesn't take a rocket scientist to figure out it's safer to have a LOC in place to draw on "before" an emergency than having to apply for a loan "during" times of emergency (or urgency).

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