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Protect Your Biggest Asset: Your Employees

A US employee loan program can be a beneficial resource for both a company and its employees. Understanding what it is and what to consider can help you get started.

Financial stress is a problem that many employees face. Emergency loans can help employees with unexpected expenses, and having quick access to funds is imperative.

US Employee Loan Programs:

When financial emergencies happen, a great option for employees is having quick access to emergency loans. Similar to personal and business lending programs, there is an interest rate and borrowers follow a repayment schedule.

What to Consider if You Are An Employer:

There are many benefits to offering employee loans as a benefit for workers. However, starting an employee loan program requires proper research. Here are some of the things you have to consider when creating loan policies:

 

  • Circumstances or reasons that will lead to granting a loan – Will loans be granted no matter the reason? Or will you only approve those for certain instances like emergencies? Will you ask for documents from employees?

 

  • Loan amount – How much can the company set aside for the loan program? What is the maximum amount employees can borrow?

 

  • Loan term (typically two to three years) – How long will the repayment be?

 

  • Repayment method (usually through payroll deductions) – What method will the company use to ensure repayment?

 

You may also want to draft a promissory note. This document will spell out the promise of a borrower to repay a loan. Include the repayment terms, including the amount, frequency, interest rate, and consequences of defaulting on the loan.

Since there are many things to prepare when creating a US employee loan program, it is recommended to work with a reliable third-party company with experience in employee loans for businesses. This can make the process quicker and you won’t have to build a program yourself.

Employees are the heart of a company. They are the ones helping the business grow and succeed. So, the company needs to be ready to extend help.

Financial struggles are not uncommon. Many American employees experience them. As a way to address financial issues, a lot of workers rely on loans. However, finding lending programs with favorable terms may be hard.

As an employer, you should consider offering employee loans as an employee benefit. Not only will it help your workers, but it will also ensure higher productivity and loyalty.

Whether you decide to do it or not, you have to weigh the pros and cons of your choices. Think about how it will impact the business, company morale, and work environment.

Protect Your Biggest Asset: Your Employees! Visit  Salary Access by Access Loans to learn more.

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