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It’s a complex question but it’s one that’s been coming up more and more often over recent months. We’ve shared the positive steps you can take to support employees’ financial well-being in our ‘10 minutes with: The Money and Pensions Service‘.

But what do you need to consider when an employee asks for a loan and advance?

Agreed principles – you’ll need to debate at a senior level what support you’re willing to offer. Is it a blanket ‘no’, the offer of a single loan or a more flexible approach – they all have their challenges and opportunities.

Who to ask – you’ll want consistency in your approach to loans. Ideally, one or two individuals should understand your loan policy and be able to implement it.

How to request – ideally you’d have an online form that the employee completes explaining the amount they want to borrow, how soon they’ll be able to repay the amount and the reason for the loan. You also want to know by when they need the money.

Refusing requests – if you’re not able to offer financial support, do you have measures in place to ensure the employee doesn’t spiral downwards due to the financial pressure they’re under?

We’re adding a loan policy to our Intelligent Employment platform to help you explain steps employees must take to request a loan, any limitations, repayment arrangements and more. Find out how to access Intelligent Employment


This update is accurate on the date it was sent (17 November 2022), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.

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