First Citizens Bank $25,000 NO DOCS REQUIRED!

Tobi Rosario

8 Jul 202408:59

Summary

TLDRIn this informative video, the speaker discusses the three tiers of banks: National, Regional, and Local, emphasizing the changing landscape of business funding. They highlight the diminishing role of foreign filing entities due to increased scrutiny by banks, who are now requesting more documentation, including utility bills, to prove business activity in specific regions. The video also covers the growing importance of business credit scores for regional and local banks, and the various financial products offered, such as business credit cards with 0% interest, SBA loans, and equipment financing. The speaker predicts the eventual phasing out of no-documentation business credit cards and offers one-on-one funding services for streamlined applications.

Takeaways

🏦 There are three tiers of banks: National, Regional, and Local, each offering different funding opportunities.
📝 Regional banks are geographically restricted, which can be circumvented by using a foreign filing entity.
🔄 Banks are starting to require more documentation for business credit cards and lines of credit, signaling the decline of 'no documentation' options.
📉 The trend of foreign filing entities is expected to diminish as banks become more vigilant about verifying business operations within their service areas.
🏠 Some banks, like Key Bank, require proof of residence within a certain radius, such as a utility bill in the applicant's name.
📋 Regional and local banks are increasingly focusing on business credit scores from Equifax and Experian for business loans and credit cards.
💳 First Citizens Bank offers various business banking products including credit cards with 0% interest for up to 12 months.
💼 Business lines of credit and SBA loans are available, but documentation is becoming more common, especially for larger amounts.
🚫 Geographic restrictions require applicants to visit a branch in person to open a business bank account and apply for products.
🔑 Strong personal credit scores and relationships with banks are still crucial for obtaining business credit products.
🔗 The presenter offers one-on-one funding services for those seeking help with business credit and funding opportunities.

Q & A

What are the three tiers of banks mentioned in the video?
-The three tiers of banks mentioned are National Banks, Regional Banks, and Local Banks.
What is the issue with Regional Banks according to the video?
-The issue with Regional Banks is that they are only available in certain regions and are geographically restricted.
What is a foreign filing entity and how is it used to overcome the regional restriction of banks?
-A foreign filing entity is a business entity registered in a state where the business is not physically located. It is used to overcome regional restrictions by allowing businesses to file in a state where they intend to do business.
Why are foreign filing entities becoming less viable according to the video?
-Banks are starting to catch on to the use of foreign filing entities and are requiring more documentation, such as proof of doing business in the state, which makes foreign filing entities less viable.
What documentation are banks starting to request for business credit cards and lines of credit?
-Banks are starting to request documentation such as utility bills in the business owner's name in the state where they are doing business.
Which banks are mentioned as examples of those requiring proof of residence within a certain radius?
-Key Bank is mentioned as an example of a bank that requires proof of residence within a certain radius of the bank.
What does the video suggest about the importance of business credit scores for Regional and Local Banks?
-The video suggests that Regional and Local Banks are starting to place more weight on business credit scores from Equifax and Experian when considering business banking products.
What types of business banking products does First Citizens Bank offer according to the video?
-First Citizens Bank offers business credit cards, business lines of credit, SBA term loans, equipment financing, and small business loans.
What is the maximum amount for small business loans offered by First Citizens Bank as mentioned in the video?
-The maximum amount for small business loans offered by First Citizens Bank is up to $500,000.
How does the video suggest that the application process for business banking products is changing?
-The video suggests that banks are starting to require in-person branch visits for opening business bank accounts and applying for business products, along with showing proof of living in the particular region.
What service does the speaker offer for those seeking one-on-one help with business funding?
-The speaker offers funding services to help individuals get access to business relationship managers, streamline applications, and improve approval rates for business credit cards and lines of credit.

Outlines

00:00

🏦 Understanding Banking Tiers and Regional Restrictions

The video discusses the three tiers of banks: National, Regional, and Local, and the process of securing funding through these tiers. It highlights the issue of regional banks being geographically restricted and the workaround of using a foreign filing entity. However, the speaker warns that this method is becoming less viable as banks are starting to require more documentation, such as utility bills, to prove business activity in a specific state. The video also mentions that regional and local banks are increasingly considering business credit scores from Equifax and Experian when evaluating applications.

05:02

📊 Business Financing Options and the Changing Landscape of Documentation Requirements

This paragraph delves into the various business financing options offered by regional banks, such as business credit cards with 0% interest for a limited time, SBA term loans, business lines of credit, and equipment financing. The speaker notes a shift in bank policy, with more banks requiring documentation for these products, especially for business lines of credit. The video also touches on the geographical restrictions of regional banks and the necessity of opening a business bank account in person at a branch. The speaker predicts that the requirement for documentation will become more prevalent, especially for business credit cards, and suggests that banks may use credit scores to determine the need for documentation.

Mindmap

Keywords

💡First Citizens Bank

First Citizens Bank is a regional bank mentioned in the script as part of the second tier of banks in the United States, alongside other banks like Chase and Bank of America which are national banks, and smaller local banks. The video discusses the bank's business offerings and how it fits into the banking ecosystem. It is used as an example to illustrate the changing requirements for obtaining business credit and the importance of regional banks in providing business banking products.

💡Tiers of Banks

The concept of 'Tiers of Banks' refers to the categorization of banks based on their size and geographical reach. In the video, banks are divided into three tiers: National, Regional, and Local. This categorization is important as it affects the types of funding and banking services available to businesses, as well as the accessibility and restrictions associated with each tier.

💡Funding Rounds

Funding rounds are stages of investment that a company goes through to raise capital. In the context of the video, it refers to the process where businesses seek financial support from banks at different stages of their growth. The script mentions that once a business has secured funding from one tier of banks, it can move to the next tier for additional funding.

💡Foreign Filing Entity

A 'Foreign Filing Entity' is a business entity that is registered to conduct business in a state other than its state of incorporation. The video discusses how this method has been used to circumvent regional restrictions for banking services. However, the script warns that banks are becoming more vigilant about this practice and are starting to require additional documentation.

💡Documentation

In the video, 'Documentation' refers to the proof of business operations or residence that banks are increasingly requiring from businesses. This includes utility bills and other forms of proof that a business is operating within a specific region or that an individual resides within the service area of a bank.

💡Business Credit Score

A 'Business Credit Score' is a numerical representation of a company's creditworthiness, separate from the owner's personal credit score. The script highlights that regional and local banks are placing more emphasis on business credit scores when evaluating applications for business banking products, such as credit cards and lines of credit.

💡Equifax and Experian Business

Equifax and Experian are two of the major credit bureaus that provide credit reports for individuals and businesses. In the context of the video, they are mentioned as the bureaus that banks are starting to pull reports from when assessing a business's creditworthiness for banking products.

💡Business Credit Card

A 'Business Credit Card' is a financial tool designed for business use, offering various benefits such as rewards and interest-free periods. The video discusses the availability of business credit cards with 0% interest for certain periods, which can be advantageous for businesses looking to manage cash flow.

💡SBA Loans

SBA Loans refer to loans guaranteed by the Small Business Administration, a U.S. government agency that supports small businesses. The script mentions SBA term loans as one of the financial products offered by regional banks like First Citizens Bank to support small businesses.

💡No-Documentation Loans

No-Documentation Loans, or 'No-Doc' loans, are loans that do not require the borrower to provide traditional documentation of income or assets. The video mentions that some banks are offering streamlined business loans without the need for extensive documentation, especially for applicants with strong credit scores.

💡Branch Requirements

In the context of the video, 'Branch Requirements' refers to the necessity for businesses to visit a physical bank branch to open a business bank account and apply for banking products. This is a change from the previous practice of being able to apply online, indicating a shift towards more in-person verification and documentation.

Highlights

Introduction to the three tiers of banks: National, Regional, and Local.

Explaining the concept of funding rounds and the possibility to move between tiers after completing a round.

The issue with Regional Banks being restricted to certain regions and the workaround of foreign filing.

The prediction that foreign filing entities will start to go away as banks become more aware and require documentation.

Banks requesting utility bills as proof of business in a specific state, impacting the strategy of foreign filing.

Listing of states where regional banks are located and the need for in-person branch visits for certain banking activities.

The requirement by some banks for proof of residence within a certain radius of the bank for business banking products.

The emphasis on business credit scores by regional and local banks, especially Equifax and Experian business scores.

The observation that national banks have not yet started emphasizing business credit scores as much as regional banks.

The availability of business credit cards with 0% interest for 9 to 12 months as a notable product offering.

The mention of the limitations of 0% interest offers being applicable to purchases and balance transfers only.

The range of business banking products offered by regional banks, including term loans, lines of credit, and equipment financing.

The requirement for documentation, especially for business lines of credit, as banks become stricter.

The mention of small business loans up to $500,000 with 100% financing and no prepayment penalties.

The need to visit a bank branch in person to open a business bank account and apply for products due to geographic restrictions.

The prediction that the requirement for documentation will vary based on the strength of the credit score.

The existence of banks that offer business signs of credit with no documentation for those with strong credit profiles.

Offering one-on-one funding services for individuals seeking help with business credit and relationship management.