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Old 12-05-2017, 08:01 PM
 
176 posts, read 141,393 times
Reputation: 229

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Hello CD,

I've been trying to set up business bank accounts for my loan broker business and banks have been denying my account strictly because of the type of business i will be doing (since they are doing loans also). I'm wondering if anyone knows about this issue and where I can get a business accounts set up for this business? Would a credit union work or am i likely to run into the same issue there?

Thank you in advance for any advice!
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Old 12-11-2017, 06:24 PM
 
7,013 posts, read 5,757,997 times
Reputation: 15954
Quote:
Originally Posted by BoredRestless View Post
Hello CD,

I've been trying to set up business bank accounts for my loan broker business and banks have been denying my account strictly because of the type of business i will be doing (since they are doing loans also). I'm wondering if anyone knows about this issue and where I can get a business accounts set up for this business? Would a credit union work or am i likely to run into the same issue there?

Thank you in advance for any advice!
What? Banks offer accounts to other financial companies all the time. Do you have all of your paperwork in order? Tax IDs, LLC, or other incorporation filings, etc?
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Old 12-12-2017, 08:54 AM
 
Location: The Triad (NC)
24,202 posts, read 52,163,452 times
Reputation: 24229
Quote:
Originally Posted by BoredRestless View Post
...strictly because of the type of business i will be doing
I doubt that.

Is your business registered with the State you are in?
Incorporated?
Are you licensed and in compliance with the regulatory requirements that apply?
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Old 12-14-2017, 01:01 PM
 
Location: All Over
3,241 posts, read 3,472,203 times
Reputation: 2409
It's not because your competition, it's because your considered a MSB or a money services business, get ready to call hundreds of banks before you "maybe" find one. Make sure you have an AML policy, a review of said policy, make sure you get whatever license is relevant for your state, and be prepared to keep a large balance with the bank basically as a bribe to accept you, to make it worth their while.

Not sure what your business is but if your thinkingi this is something you can get setup fairly easily think again, if that's the case maybe do lending club or some Bitcoin lending thing. To actually setup a real business in this space is nearly impossible because banks and processors blackball you.
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Old Today, 08:45 PM
 
176 posts, read 141,393 times
Reputation: 229
Well i managed to get an account at another bank. I'll probably end up moving my personal accounts from the first bank to the next one eventually to keep everything together.

To add more information, the banker at the first bank couldn't get past an internal validation because the name of my business had the word "Capital" in it. She suggested i change the name of my business which i didn't want to do, and was kind of insulted that was even suggested like they would open an account with me if i do the same business but don't have that one word in it? How does that make a difference? Perhaps if i talked to a different banker they would have figured something out but i i was never particularly attached to the first bank anyways.

When i talked to the other bank i was more specific upfront that i'm only a broker, not a lender, and the banker was kind of hesitant because of the money service business deal but set up the account anyways.

I do have all of my paperwork in order. I think part of the problem was also that i showed my license to the first bank, but the second bank i only showed my DBA with the intent of showing my license only if asked for.

Anyways, i did get an account so problem solved. Hope this was at least interesting to some of you!
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Old Today, 09:43 PM
 
14,140 posts, read 9,020,481 times
Reputation: 9111
Quote:
Originally Posted by BoredRestless View Post
Well i managed to get an account at another bank. I'll probably end up moving my personal accounts from the first bank to the next one eventually to keep everything together.

To add more information, the banker at the first bank couldn't get past an internal validation because the name of my business had the word "Capital" in it. She suggested i change the name of my business which i didn't want to do, and was kind of insulted that was even suggested like they would open an account with me if i do the same business but don't have that one word in it? How does that make a difference? Perhaps if i talked to a different banker they would have figured something out but i i was never particularly attached to the first bank anyways.

When i talked to the other bank i was more specific upfront that i'm only a broker, not a lender, and the banker was kind of hesitant because of the money service business deal but set up the account anyways.

I do have all of my paperwork in order. I think part of the problem was also that i showed my license to the first bank, but the second bank i only showed my DBA with the intent of showing my license only if asked for.

Anyways, i did get an account so problem solved. Hope this was at least interesting to some of you!


Well there is that huge bank with the same name (Capital One), so.....
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