Banking. preauthorized credit cards and lines of credit?
Comments (1) 
itschrisk asked:
I am starting a private jet charter brokerage. As the middle man I accept payment from clients into my business’ checking account and then pay the plane operator from that same account. However, payment does not occur at the time of booking, there is a credit hold placed preflight and then upon landing the actual amount is settled (net 10).
I am starting a private jet charter brokerage. As the middle man I accept payment from clients into my business’ checking account and then pay the plane operator from that same account. However, payment does not occur at the time of booking, there is a credit hold placed preflight and then upon landing the actual amount is settled (net 10).
I accept a preauthorized credit card HOLD for the retail amount of the trip from my client. Subsequently, the plane operator puts a hold on my credit for the wholesale amount.
My problem is that I dont have enough credit to back the transaction. The question is, can I use the clients preauthorized credit card as collateral to back a line of credit or is there any other way for me to handle the transaction?
Thanks for your help!
JUDE
Tags: insurance, etc., We talk about private plane ownership, chartering, operating costs
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