Should Foreign Employers Allow Giving Loans to Their Overseas Employees

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Out of the many roles an employer plays, becoming a lender to their employees is one of those usually forgotten.

One of your employees might face a medical emergency within their families, an immediate money needs for private reasons, or payment for their children's school fees. No matter what reason this would be, anyone who braves to ask a loan from you are desperate enough to have whatever they need. And as an employer, it would be too lame not to sympathize.

Most overseas workers didn't really have spare cash to cover emergency expenses and when they fast loan advance reviews that with immediacy, their employers would be the best option, yet the last resort that they could seek. After all, they are the ones who are paying them with salary. In this situation, will you give in or will you just turn them down?

Whatever choice you will take, you should study its prior impact on your business, your employees, your workplace, and the entire organization.

How Employers Could Offer a Loan

As an employer, you should identify why your employee needs to avail a loan. Make sure that there should be a certain necessity. This will establish that there must be a valid reason before they could seek a loan from you. Some employers in countries with specified laws on credits should also be aware if they have to be registered as a credit provider before granting loans to employees.

You should then create a formal lending arrangement with comprehensible guidelines and that should be amenable to everyone.

A promissory note should be provided which must include details such as the total amount of loan, payment frequency, and lastly, interest rate. Don't be too good enough not to charge interest. That form of kindness may lead to legal tax consequences that you might not like.

Every payment should also be duly recorded. Set limitations on the number of times they can borrow from you. This will limit abuse and will also encourage them to fix their financial woes as much as possible.