What am I missing?

I need a little help. I have been approached by one of my banks Cash managers who has presented a quirky customer request. And asking my thoughts. But I think I'm missing something here. Please help me out. Here's the scoop.

The cash managers has been asked by an existing client (has business checking and savings account plus personal checking savings, cd accounts with us for over 10 years.Also important to know is that he owns several rental properties). Has been a "good" client with average collect balances of $8,000 per day. The client is asking to sign up for ACH services through his business account. He is requesting limit to be placed at $30,000 per day. Typically, we would offer the product with limit based on average collected balance. Client stated the reason he would like to have the 30K limit is that he needs to access lines of credit from other institutions via ACH prior to them reducing the credit available due to one of the properties going into foreclosure. He is afraid that if he attempts to use his checks they will be returned. He also would like to use ACH services to collect tenants rent. You should know that the business account is for a Hair Salon with articles of incorporation. We aren't certain but pretty sure the rental property is personal.

What should we be looking at to help us make our decission. Our gut tells us to deny the ACH services. One he shouldn't be clearing the rent through a business account unless that business owns the properity. And also we are concerned that we might be helping him commit fraud?

Any help would be appreciated.

"Client stated the reason he would like to have the 30K limit is that he needs to access lines of credit from other institutions via ACH prior to them reducing the credit available due to one of the properties going into foreclosure."

I would not assist a client in doing an end around on another bank. It doesn't sound like your "good" client is all that good anymore. Also, I'm a little rusty on ACH, but I didn't think you could use ACH to debit a loan account.