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No. of Recommendations: 0

the line of credit is mere potential.

As a check of my understanding: A company establishes a line of credit, paying a fee for the privilege, in order to have "instant" borrowing power to take advantage of opportunities that might not wait.

It would be similar to me having Master Card checks but only using them in a true emergency. No significant cost to me as long as my other (non-interest bearing) sources of cash are adequate.

Thanks for your confirmation.

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