Commercial credit lines.

Another alternative, which can help you weather a downturn, is to apply for a commercial credit line. But the time to apply for a commercial credit line is long before you need it.

If things are going south fast, you may need the services of a liquidator.

Jonathan Reich, a bankruptcy attorney, works for Michael Fox International, a Baltimore, Md.-based liquidation firm with offices in New York.

"Our business has two aspects: appraisals and liquidation, and auctioning of assets -- typically machinery, equipment, real estate and inventory," said Reich.

He said many business owners don't know how to maximize the sale of their assets when their business is in trouble. Often, the bank insists on an appraisal of assets long before the business owner will call his firm for help, Reich said, adding that a professional appraisal can cost $5,000 to $20,000 or more, depending on the size of the company.

"The appraisal report is used extensively as testimony (in a bankruptcy hearing)," said Reich. "The debtor tries to show the bank is oversecured; the bank takes the opposite view."

He said if your business is having financial problems, you have to persuade the bank why they shouldn't pull the plug on your loan.

Jane Applegate is the author of "201 Great Ideas for Your Small Business," and is CEO of SBTV.com, a multimedia site providing small-business resources. She can be contacted via email at [e-mail], or by mail at P.O. Box 768, Pelham, NY 10803.