Credit Policy for businesses and how to extend credit and manage credit risk

When I talk with people who tell me they are opening a business, many tell me thier first step is opening lines of credit.  This is not a good first step but there are ways you can find out whether you or your buisness is in a good position to take that step.

What you need to know:

1. Open a credit line as soon as it is feasibly possible but NOT before!
2. Try to keep personal and buisness credit seperate.
3. It is better to have credit and not need it in some cases.