Bank w/ SECURED BLOC + HYSA

[CitySlicker99]

Hi all!

Looking for a bank or similar that offers a decent HYSA or similar in exchange for a decent limit BLOC.
IE a secured business line of credit, Secured BLOC. I have 100k+ to park at each establishment that offers this. 

I live in Las Vegas and a lot of the east coast banks that are known for great lending are unavailable to me as they require in person setups and/or in state residence, ex: PNC, TD, Truist, etc
I have been banking w/ NFCU Business for years, not happy, I want a bank with higher online transfer limits and free ach, free incoming domestic wires.
Last week, to establish relationships and the hope of future large CL and CL increases, I opened Business accounts at Chase, Wells Fargo & First Citizens.

Business 1 year old, Single Member LLC taxed as S-Corp
650k annual revenue

150k income

703 personal fico scores, no late payments in six years and always <10% utilization on ~45k personal CL's
0/25 new personal credit accounts last two years 
2 hard pulls, from this month from Chase and Wells Fargo (BCC & BLOC)

- Last week, I applied and was approved for a 9k Amex BBC (soft pull) and a 16k Chase IUC (hard pull) and also PRE-approved for an Amex BLOC 25k. 
- Last week, I also applied for a Wells Fargo BLOC and was informed today I was denied. I asked to be reconsidered and they said that my application has already been denied and there is no ability to reconsider. I told them I have P&L, Tax Reports, Bank Statements and they responded they have no one that can review them.. I could apply for a full SBA BLOC and they could look at all my docs. I'm not interested rn.
- After hearing the news from Wells Fargo, I went to fully apply for the Amex Bloc and my PRE-approval from last week disappeared so sad. I decided not to apply for now.

- Wells Fargo said they do not offer Secured BLOC against HYSA or similar
- Chase does not offer Secured BLOC against HYSA or similar... unless you have been in business 2+ years. 
- First Citizens does not offer Secured BLOC against HYSA or similar... unless you have been in business 2+ years.

- Amex said they do not offer Secured BLOC. And they have "No manual approvals" IE, they only do Ai/digtial approvals. (BLOC department)
- Bank of America said they could not even tell me over the phone. They said I have to make an appointment to find out. I guess I will make an appointment at BoA to hear if they can help me or not. 

Any help greatly appreciated!

[cashorcharge]

I am "guessing" that both Chase and AMEX pulled your EX and while you have sufficient revenue, your FICO at 703 is on the cusp of "good" so if they saw 2 pulls for accounts in the same week, Wells Fargo may have gotten hesitant.  It is true, WF does not re-evalutate.

While I am not in your predicament....I would say that "banks" do evaluate relationships....but with your new money going into an account, the dollars don't outweigh a long term relationship...there's nothing stopping you from pulling those funds tomorrow.

Two options....you didn't mention Sole Prop or LLC....there are several lending institutions geared towards just businesses and with an LLC and your large deposit, you can provide proof of funds and get awards a larger BLOC.  Secondly, Credit Union's are more focused on relationships to a point than banks so if there's a good CU in your area...meeting with a banker to pose those questions may be worth your while.

Try some of these FI's

https://www.forbes.com/advisor/l/best-business-lenders/?utm_content=158278913700&utm_term=kwd-297717...

[SouthJamaica]

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@CitySlicker99 wrote:

Hi all!

Looking for a bank or similar that offers a decent HYSA or similar in exchange for a decent limit BLOC.
IE a secured business line of credit, Secured BLOC. I have 100k+ to park at each establishment that offers this. 

I live in Las Vegas and a lot of the east coast banks that are known for great lending are unavailable to me as they require in person setups and/or in state residence, ex: PNC, TD, Truist, etc
I have been banking w/ NFCU Business for years, not happy, I want a bank with higher online transfer limits and free ach, free incoming domestic wires.
Last week, to establish relationships and the hope of future large CL and CL increases, I opened Business accounts at Chase, Wells Fargo & First Citizens.

Business 1 year old, Single Member LLC taxed as S-Corp
650k annual revenue

150k income

703 personal fico scores, no late payments in six years and always <10% utilization on ~45k personal CL's
0/25 new personal credit accounts last two years 
2 hard pulls, from this month from Chase and Wells Fargo (BCC & BLOC)

- Last week, I applied and was approved for a 9k Amex BBC (soft pull) and a 16k Chase IUC (hard pull) and also PRE-approved for an Amex BLOC 25k. 
- Last week, I also applied for a Wells Fargo BLOC and was informed today I was denied. I asked to be reconsidered and they said that my application has already been denied and there is no ability to reconsider. I told them I have P&L, Tax Reports, Bank Statements and they responded they have no one that can review them.. I could apply for a full SBA BLOC and they could look at all my docs. I'm not interested rn.
- After hearing the news from Wells Fargo, I went to fully apply for the Amex Bloc and my PRE-approval from last week disappeared so sad. I decided not to apply for now.

- Wells Fargo said they do not offer Secured BLOC against HYSA or similar
- Chase does not offer Secured BLOC against HYSA or similar... unless you have been in business 2+ years. 
- First Citizens does not offer Secured BLOC against HYSA or similar... unless you have been in business 2+ years.

- Amex said they do not offer Secured BLOC. And they have "No manual approvals" IE, they only do Ai/digtial approvals. (BLOC department)
- Bank of America said they could not even tell me over the phone. They said I have to make an appointment to find out. I guess I will make an appointment at BoA to hear if they can help me or not. 

Any help greatly appreciated!

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I'm curious why you would want such an account. Why not just park the money, and use it when needed? And re-park it when not needed?

[CitySlicker99]

Why do I want a HYSA account or similar to park my cash in while using a BLOC?  

Because I am a product based business and will only be utilizing the BLOC for 1-2 months each draw.
If I were to use the Amex BLOC that was offered, 6mo BLOC @ 4.5%, for only 1-2 months, I am only paying <1.5% on my BLOC
If I were to use the Wells Fargo or similar BLOC, 12mo BLOC @12-18%, for only 1-2 months, I am only paying <3% on my BLOC.

Considering a decent HYSA or brokerage account is making around 4.3% - 5.3% interest right now, I would be making the difference between the above, 1.5% or 3%, and the 4.3% - 5.3%. 

In other words, using my own money (Not using a BLOC) will actually Cost Me money because the interest rates are so high. 
It makes much more sense to park my money in an account like this and utilize short term loans, like BLOCs. 
FYI, I am using already using 0% Biz Credit Cards to do this as well. 

If I were a newer business, buying inventory, having to wait 1 month for production, wait another month for shipping and then have no idea how long it will take to sell the goods, then my BLOC plan above will not work for you, it would actually cost you more to use the BLOC. It only works for me because I only use the BLOC for 1-2 months and then pay in full. IE, I have been selling these goods for some years and have clients waiting to buy/pay when my goods are ready to sell. 

[SouthJamaica]

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@CitySlicker99 wrote:

Why do I want a HYSA account or similar to park my cash in while using a BLOC?  

Because I am a product based business and will only be utilizing the BLOC for 1-2 months each draw.
If I were to use the Amex BLOC that was offered, 6mo BLOC @ 4.5%, for only 1-2 months, I am only paying <1.5% on my BLOC
If I were to use the Wells Fargo or similar BLOC, 12mo BLOC @12-18%, for only 1-2 months, I am only paying <3% on my BLOC.

Considering a decent HYSA or brokerage account is making around 4.3% - 5.3% interest right now, I would be making the difference between the above, 1.5% or 3%, and the 4.3% - 5.3%. 

In other words, using my own money (Not using a BLOC) will actually Cost Me money because the interest rates are so high. 
It makes much more sense to park my money in an account like this and utilize short term loans, like BLOCs. 
FYI, I am using already using 0% Biz Credit Cards to do this as well. 

If I were a newer business, buying inventory, having to wait 1 month for production, wait another month for shipping and then have no idea how long it will take to sell the goods, then my BLOC plan above will not work for you, it would actually cost you more to use the BLOC. It only works for me because I only use the BLOC for 1-2 months and then pay in full. IE, I have been selling these goods for some years and have clients waiting to buy/pay when my goods are ready to sell. 

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Thanks for the explanation. Unfortunately, I'm not sophisticated enough to understand it. I don't know why you can't just keep the money in the savings account, use it when needed, and skip the BLOC altogether.

[URHomeInvestments]

I don't have an answer, but want to thank you for putting your process in the thread, becuase it is the kind of thing many of us are looking for and your experiences will be of help.   Those data points are so very valuable and the narrative is even more so.  Thanks~