Question on Banking in the Q & A Forum

USCGCraig

I have a question on banking for anyone who has tried to set up a business checking account in the last 6-12 months as a coin dealer. Can you good folks hop on over and take a peak and reply accordingly please. I'm at a massive crossroads in my coin business right now. I'm trying to be as legit as I can as a dealer. Any help will be greatly appreciated.

ColonelJessup

Have you applied for an EIN? In what state are you located?

USCGCraig

In California. Banks just don't want to deal with anyone who handles a lot of cash right now.

jmlanzaf

Did you try an online bank?

BillJones

Interesting ...

When I was a dealer I handled some cash, but most it was checks. I'd have maybe $2,000 in cash to deposit from a small show and another six to eight thousand in checks. I never had a problem, and I was in Massachusetts.

USCGCraig

I'd like to go with a local brick and mortar bank. My reasoning is this. When I present a check to most likely an elderly client, they'll want to take it to an actual bank to cash it as most don't know how to use their phone to deposit checks. Can't blame them. Otherwise, I'd use USAA in a heartbeat. My goal is to make my clients as comfortable as possible and if I can eliminate any possible hangup that I've discovered over my years of working in a coin shop, I want to do that. I also want to have the ability to deposit cash if need be. I have my Anti-Money Laundering Plan. I've done everything possible. I have not gotten an EIN as I am currently Sole Prop for certain reasons until the beginning of September when I will change to an LLC. I'm not going to go into details as to why I chose that date on a public forum. But there is a very good reason.

MsMorrisine

I'm not going to go into details as to why I chose that date on a public forum. But there is a very good reason.

But We would be glad to help celebrate your 18th birthday

jmlanzaf

@USCGCraig said:
I'd like to go with a local brick and mortar bank. My reasoning is this. When I present a check to most likely an elderly client, they'll want to take it to an actual bank to cash it as most don't know how to use their phone to deposit checks. Can't blame them. Otherwise, I'd use USAA in a heartbeat. My goal is to make my clients as comfortable as possible and if I can eliminate any possible hangup that I've discovered over my years of working in a coin shop, I want to do that. I also want to have the ability to deposit cash if need be. I have my Anti-Money Laundering Plan. I've done everything possible. I have not gotten an EIN as I am currently Sole Prop for certain reasons until the beginning of September when I will change to an LLC. I'm not going to go into details as to why I chose that date on a public forum. But there is a very good reason.

That's all great. But if you put this restrictions on yourself and the state of California did the rest, I'm not sure what anyone here can do to help you.

USCGCraig

@MsMorrisine said:

I'm not going to go into details as to why I chose that date on a public forum. But there is a very good reason.

But We would be glad to help celebrate your 18th birthday

That was a few decades ago. Wish I had the wisdom I have now to go along with the young body of yesteryear. Nice idea though.

USCGCraig

@jmlanzaf said:

@USCGCraig said:
I'd like to go with a local brick and mortar bank. My reasoning is this. When I present a check to most likely an elderly client, they'll want to take it to an actual bank to cash it as most don't know how to use their phone to deposit checks. Can't blame them. Otherwise, I'd use USAA in a heartbeat. My goal is to make my clients as comfortable as possible and if I can eliminate any possible hangup that I've discovered over my years of working in a coin shop, I want to do that. I also want to have the ability to deposit cash if need be. I have my Anti-Money Laundering Plan. I've done everything possible. I have not gotten an EIN as I am currently Sole Prop for certain reasons until the beginning of September when I will change to an LLC. I'm not going to go into details as to why I chose that date on a public forum. But there is a very good reason.

That's all great. But if you put this restrictions on yourself and the state of California did the rest, I'm not sure what anyone here can do to help you.

I see your point. I need to broaden my approach then. It seams that using the DBA is the way to circumvent all the roadblocks whether imposed by the bank or self-imposed.

Really appreciate everyone's candor. Got me thinking in a different direction which is good. Thank you Forum members.

amwldcoin

Most banks will not allow you to deposit a DBA check anymore. Mine used to but stopped several years ago. They want you to spend the bucks for a business account where you pay for money coming and going.

BStrauss3

Try more banks. Try smaller banks. Try credit unions. Somebody wants your business, you just haven't found them yet.

Call other dealers and ask where they bank. You might have to do that one in person, it's a bit of an odd question and might set their radar a-quiver over the phone. Heck, you might have to make a small purchase by check and see where it's deposited.

Fishpro

I use a local credit union, most credit unions have a tie in with a national group.

USCGCraig

@BStrauss3 said:
Try more banks. Try smaller banks. Try credit unions. Somebody wants your business, you just haven't found them yet.

Call other dealers and ask where they bank. You might have to do that one in person, it's a bit of an odd question and might set their radar a-quiver over the phone. Heck, you might have to make a small purchase by check and see where it's deposited.

I have two local dealers who have been a huge help. I have done that and they are grandfathered in unfortunately. Those banks do not want new customers who deal with cash. It's just going to be a long process of calling each bank one by one. Such a royal pain in the arse. Nope, can't be easy. And here I thought the State of California was going to give me the biggest heartaches but that's not the case.

USCGCraig

@Fishpro said:
I use a local credit union, most credit unions have a tie in with a national group.

The credit unions I've gone to so far don't do business accounts. Need to keep searching but thank you.

MsMorrisine

@BillJones said:
Interesting ...

When I was a dealer I handled some cash, but most it was checks. I'd have maybe $2,000 in cash to deposit from a small show and another six to eight thousand in checks. I never had a problem, and I was in Massachusetts.

perhaps you can honestly downplay the amount of cash you'd be handling.

BillJones

@MsMorrisine said:

@BillJones said:
Interesting ...

When I was a dealer I handled some cash, but most it was checks. I'd have maybe $2,000 in cash to deposit from a small show and another six to eight thousand in checks. I never had a problem, and I was in Massachusetts.

perhaps you can honestly downplay the amount of cash you'd be handling.

I told you the truth. I took checks, and only had four bad ones in 12 years, two each from one collector and one dealer.

A mentor dealer told me to limit cash sales and purchases and took that to heart.