Small Business should safeguard their money as bank fails

Citigroup bought out my bank. I also happen to live in Charlotte so not only is my bank bought out but now people are worried about layoffs. Wachovia, with about 20,000 employees, is the second largest employer in Charlotte. As a consumer with less than $100,000, my money with the bank is insured by FDIC. But small business owners are getting stressed as banks continue to fail. There are some things small business owners can do to protect their money.

Have accounts at multiple banks below FDIC limits. This is not the most efficient way to do business and it can be inconvenient but your money will be protected.

Pay off major purchases by borrowing against a line of credit and then pay it off. This will keep you from having large sums of money on hand.

Stash corporate savings in money market funds or in Treasury bills.
Check out the American Bankers Association web site which lists tips for small business owners.