{"id":7454,"date":"2015-02-03T08:35:01","date_gmt":"2015-02-03T16:35:01","guid":{"rendered":"https:\/\/www.nationalfunding.com\/?p=7454"},"modified":"2022-03-04T15:05:08","modified_gmt":"2022-03-04T23:05:08","slug":"making-sure-your-business-funding-can-be-used-how-you-wish","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/making-sure-your-business-funding-can-be-used-how-you-wish\/","title":{"rendered":"No Strings Attached: Making Sure Your Business Funding Can Be Used How You Wish"},"content":{"rendered":"

The list of things working capital<\/a> can be used for is seemingly endless. Updated equipment, new staff members, expanded inventory – owners rely on business\u00a0loans to help them with many different projects.<\/p>\n

It’s for this reason that having the freedom to spend your loan proceeds on what you wish is vital. Unfortunately, this financial independence\u00a0isn’t always a given when obtaining loans from traditional financial institutions.<\/p>\n

For instance, if you were to acquire a 7(a) loan through the U.S. Small Business Administration, there would be a number of restrictions on how the money could be spent.<\/p>\n

Funds could not be used to refinance existing debt if the lender may sustain a loss and the SBA would be held responsible. You could not affect a partial change in business ownership if it might\u00a0not benefit the business. Additionally, you could not repay delinquent state or federal withholding taxes that should be held in trust or escrow.<\/p>\n

In fact, the SBA states\u00a0loans cannot be used for any reason it does not deem as a sound business purpose.<\/p>\n

These restrictions are just one reason why more small business owners are turning to alternative lenders to obtain the funds they need.<\/p>\n

The advantage of a merchant cash advance<\/h3>\n

First and foremost, merchant cash advances allow you to use your funding any way you choose, including:<\/p>\n