Corporate Jet Fleet

The Situation

The owner of a fleet of corporate jets used by businesses on a rental basis came to Newtek with a unique problem. Many of the company's clients had converted to the use of corporate credit cards in lieu of purchase orders and checks to pay for large purchases. The average ticket was in excess of $25,000.

The Issues and Needs

Due to the large average ticket most merchant processors would not even consider accepting the jet fleet company as a client. The risk associated with the transactions was too great in the event there was a chargeback on a transaction. However, the company needed to accommodate its clients and begin accepting the corporate cards or lose the business to competitors.

The Solution

Newtek's Electronic Payment Processing division was able to work with the client and their bank to have a Letter of Credit issued by the financial institution to protect Newtek in the event of a large chargeback.

The Result

Today the business has grown to a level that it provides a cash reserve against charge backs and no longer needs the Letter of Credit.

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