Yes. The client can spend the funds any way they want to as if they received a loan from a bank or a family member. The loan itself is between the client and the lender, and is unrelated to your company's existing estimates, invoices and terms of service - you should be receiving estimate approvals and invoice payments as you normally do, as if the client had the cash up front.
The product has been built this way to keep things as simple and cost effective as possible for contractors.