Crowngate Funding Group, a small-business funding service in Grand Island, NE, answers questions on tax treatment of equipment, collateral on credit lines, bank accounts and merchant cash advances. Crowngate matches each request with funding partners, who review it and make their own decision. Each answer points to the page with the full explanation.
Equipment
Are equipment loans tax deductible for a Nebraska business?
Whether interest and depreciation on business equipment are deductible depends on your return and the type of agreement. Ask your accountant. The financing side is on the equipment financing page.
Is equipment financing a loan, a lease or both?
It can be a loan, where you own the equipment subject to a lien, or a lease, where the lessor owns it until any buyout.
Credit lines and collateral
Does a business line of credit require collateral, or just a guarantee?
Some lines are secured by receivables or a lien on business assets; others are unsecured but backed by a personal guarantee. See the business line of credit page.
Can you get a business loan without a business bank account in Nebraska?
Partners read business bank statements to judge cash flow, and personal accounts make that hard. Open a separate business account and run sales through it for a few months first.
Merchant cash advances
Is a merchant cash advance a loan under the Crowngate definitions?
No. A funder buys upcoming receipts and collects them out of sales. Read the merchant cash advance page and total every remittance before comparing it with a loan.
Can I hold a cash advance and a loan at the same time?
Some partners allow it; others will not lend behind an advance that is still being collected. Disclose every advance up front.
The process
Will you check my credit when I call?
A phone call or the online request does not involve a credit check by Crowngate. A partner reviewing your request may check business and personal credit; ask the partner which kind of inquiry it uses.
Am I bound to take a partner's offer?
No. Walking away from any offer is allowed. Every stage is listed on how it works.
By Crowngate Funding Group · Updated