Q: I have a six-month old startup and am currenltly running out of the cash I raised when I started the business. Should I apply for a bank line of credit or start placing expenses on my corporate credit card?

A: In normal markets, it's usually better to tap a credit line or seek a small-business loan when going into debt to fund a business, because the interest rates you pay or invariably cheaper than the ones on a credit card. But this isn't a normal market, and you may find two problems: your bank might not offer credit at all in this environment, or the interest rate may be prohibitively expensive.

If you can get a good rate and a loan, do it. If not, use the credit card, but use it sparingly and pay it off quickly. And keep an eye out for other sources of capital (venture capital, angel funding, friends and family) that can buy equity and can enjoy some of the payoff when you succeed.

Q: With several banks failing, is it wise to spread a small business' account among several banks to make sure the deposits fall under the Federal Deposit Insurance Corp.'s limits?

A: While it is true that several banks have gone under this year, no depositholders have lost money, since, in most cases, the federal government swooped in to get another, more stable bank to purchase the deposits. But, if you're worried, you could set up separate accounts at either other banks, or the same one where you keep the majority of your assets.

First, remember that the FDIC has raised its limit -- essentially the amount per account that is protected -- to $250,000 from $100,000. (This was a byproduct of the federal bank bailout legislation in October.) So, if you don't keep more than $250,000 in a given account, no worries.

Depending on the nature of your business, you could set up an individual account for some of your business's assets and keep the $250,000 limit for your primary business account. (Make sure you consult a tax advisor first, since there could be some income-tax implications in this.)

Finally, if it gives you piece of mind, carve out some of the account and place it with another bank to stay under the $250,000 limit. There's a possible side benefit to this: Having multiple banking arrangements may help you be able to negotiate a better rate for your business's borrowing.