Quote:
Originally Posted by dreamingat30fps
I meant the other terms of the contract. Being able to have anything you own as collateral, having to only use the money for specific things and not others etc. That's my understanding anyways, could be wrong.
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Anything owned by the business is collateral, not you personally. I did not provide a personal guarantee. In my case, the only asset of my LLC is A/R and the loan proceeds sitting as cash, so no big deal. I can understand if a business has other assets and doesn’t want to use them as security because they are used for security of other debt. Yes, you have to agree to not use the money except for the business but doubt there will be any audits or issues as long as payments are made. In my case, I have no intention of using it for anything other than an extra cushion and will probably repay it early when the economy is in a better place in a year or two.