You are probably watching the news this past few weeks and may be nervous about your personal or business bank account.  Washington Mutual is the latest bank to fail and you might be nervous about deposits held in your work at home bank accounts.  Put the worry aside as you are covered up to $100,000 from FDIC and may be covered on additional assets.  You can also be covered if you have a joint account or have assets under your child’s name.  A great website to review your financial institution insurance holdings with the FDIC is found here.  Put your mind to rest and review your banks insurance.

More important for your work at home business are your access to credit and cash.  With the current financial situation you might want to call your local bank and discuss credit options for future business activity.

Here are some questions you might want to consider asking:

1.  Do you have sufficient access to credit for the next 6-12 months?  Do you have a backup plan for utilizing personal loans or credit cards if necessary to purchase inventory?  Could you ask family or friends for a short term loan if you needed it?

2.  Do you have access to a HELOC or home equity line of credit account?  Does your bank plan to keep your existing equity available or are they lowering client amounts?  This has happened at major institutions and you will want to know if this could impact your home business.

3.  Try and negotiate any fees paid for your business accounts.  Ask whether your bank can wave check fees or minimum balance requirements for established business clients.

4.  Schedule a meeting with your bank representative and/or accountant and review your home business balance sheet.  What are your needs for the next few months.  Maybe you don’t have credit issues and can survive on your personal accounts.  Again, just make sure you have a plan of action and that your cash needs are met for the next 6-12 months.

5.  If you handle your taxes, payroll, and expenses yourself be sure to utilize a good software program and review your credit needs.