Newbie question concerning business banking, but one I'd like to understand before it comes up with my investors. They're to bring in funds in the $10~$15M range; it will be drawn down over the first 4 months to procure capital equipment [$9M], pay salaries, and fund other Company expenses in the pre-revenue phase.

Obviusly, one doesn't simply put that kind of money into the Company's checking account-- for many reasons including that FDIC doesn't insure it.

So, just where do such funds typically get "parked" while waiting to be expended and-- for that matter-- what kind of operating account ought we be considering? My company projects cash flow / turnover over a million dollars per month... and those funds *also* do not belong in a standard checking acount-- or do they???

I'm not an expert on this topic but I would suggest doing a little research into which bank is the most financially secure. The results from the federal government's "stress test" on banks may be a good tool.

If we have another panic as we had in September of 08' you could always diversify your funds at that time. Also, keep in mind that if a major bank is about to default, the federal government is likely to step in as it did in 08' with Citigroup, Bank of America, AIG, etc.