Pull out funds from Line of Credit While you Still Can?

[Ori Skloot]

Given the current Covid impact on business, real estate and banking, we could be heading into a liquidity issue in the coming months.  Perhaps the government's stimulus package will prevent this, but who knows?   What say you @Chris Mason? If there is a liquidity crisis will banks start canceling open line of credits like last time? If that's a possibility do you think it would be prudent to draw down our LOCs now?  I have colleagues with much more experience and deeper pockets than me who have maxed out their credit lines and HELOCs in anticipation of the funds getting cut off.  They figure they would rather pay a few months of interest with the funds sitting in their bank than lose their ability to have cash on hand right now.  

Has anyone else done the same and what is your reasoning?