The only time I feel comfortable hitting the credit line to cut paychecks is when we have more in A/R than we are borrowing. When we don't have more in A/R than we're borrowing and we don't have enough to cover all paychecks, the partners don't get paid that month. I'm probably a lot more conservative than most, but I have a simple rule when it comes to the credit line: hit it once and once only, pay it off before you hit it again (and the A/R rule still applies).

Maxing out your credit line when you're not generating enough revenue to cover expenses in order to stay open is like putting a brain dead patient on a ventilator. Can you extend life? Yes. Can you alter the outcome? No, you can only make the outcome more expensive.