I am trying to show that $|\langle \psi|_{A} \otimes \langle \phi|_{B}|\theta\rangle_{AB}|^{2}<1$ given $|\theta\rangle$ is an entangled state, and as such has Schmidt rank $>1$. Decomposing it, we get $$|\theta\rangle=\sum_{i}\lambda_{i}|i\rangle_{A}|i\rangle_{B}$$ so $(\langle \psi|_{A} \otimes \langle \phi|_{B})|\theta\rangle_{AB}=\sum_{i}\lambda_{i}\langle\psi|i\rangle_{A}\langle\phi|i\rangle_{B}$ which means $$\begin{align}|\langle \psi|_{A} \otimes \langle \phi|_{B}|\theta\rangle_{AB}|^{2}&=\left(\sum_{i}\lambda_{i}\langle\psi|i\rangle_{A}\langle\phi|i\rangle_{B}\right)\left(\sum_{j}\lambda_{j}\langle\psi|j\rangle_{A}\langle\phi|j\rangle_{B}\right)^{*}\\&=\sum_{i,j}\lambda_{i}\lambda_{j}^{*}\langle\psi|i\rangle_{A}\langle j|\psi\rangle_{A}\langle\phi|i\rangle_{B}\langle j|\phi\rangle_{B}\end{align}$$
Now I am told to use the Cauchy Schwarz, and immediately it can be used on the 4 complex numbers resulting from the I.N. here, so we get $$\sum_{i,j}\lambda_{i}\lambda_{j}^{*}\langle\psi|i\rangle_{A}\langle j|\psi\rangle_{A}\langle\phi|i\rangle_{B}\langle j|\phi\rangle_{B}\le\sum_{i,j}\lambda_{i}\lambda_{j}^{*}$$
However, this last term is not strictly upper bound by 1. The only thing I can think of is that, due to the choice of the product state being free, you would choose them so the overlap with the product state assigned to the largest Schmidt coefficient would be 1, the modulus squared of which has to be less than 1. However, I am not sure how to present a tidy proof of this.