I've worked with people who get a credit line or a working capital loan, and have no idea of what happened to it.

They are unhappy and upset that they took the loan, and feel like they made a mistake. They did make a mistake, but it is not taking the loan. The mistake is spending the funds without understanding where or why, instead of using the funds for targeted expenses.

In the past, I have talked about how to plan to use loan funds that are coming in from PPP, EIDL, or commercial financing sources. Here are the basics:

1. Use a separate account for loan funds to ensure they are used for the planned purpose
2. Use a 13-week cash flow model to plan the use and the repayment
3. When you can, put excess funds back into the loan account so you don't just spend the "extra"

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