Set up loans

Everything HR must set up before staff can apply for a staff loan, and how a loan moves from application to the last repayment.

For hr administratorsUpdated 4 Nov 2026

Before you start

  • Set up employees and supervisorsHR adds each employee with the email they sign in with and a primary job with a join date. Loan eligibility is worked out from these.
  • Set up HR settingsThe employment types and statuses on the employee's job record are created there.
In this article
  1. How a loan moves through WbizManager
  2. Steps
  3. What employees and managers see
  4. If something goes wrong

Staff loans let an employee borrow from the company and repay it from their salary. HR sets up loan types (the products staff can apply for), then two approval steps, an offer the employee accepts, and the payout.

Loans don't go to the employee's line manager. They are approved by HR (step 1) and then by management, usually the Managing Director (step 2).

How a loan moves through WbizManager

StageWhoWhat happensGuide
1. SetupHRLoan types, limits, eligibility rules, MD email alerts, who can approveThis page
2. ApplyEmployee (or HR for them)Picks a loan type, amount, months and purpose; eligibility is checkedApply for a loan
3. ApproveHR, then MDStep 1 (HR) and step 2 (MD). Either can lower the amount or rejectApprove loan applications
4. Accept the offerEmployeeReads the offer letter and accepts or rejects itAccept a loan offer
5. Pay outHR or financeRecords the payout date, reference and methodDisburse a loan
6. RepayPayroll, HRThe monthly instalment comes out of pay; HR can record other repayments or a payoffRecord loan repayments
7. Follow upHR and financeApplications, history, dashboard and reportsManage loan applications, Loan reports

Steps

  1. Check your employees' records

    WbizManager checks eligibility from the employee record, so check it before staff apply:

    • the record's email matches the email the employee signs in with, otherwise they see Your sign-in isn't linked to an employee record yet;
    • the employee has a primary job with a Join Date (used for the minimum time at the company);

    See Set up employees and supervisors.

  2. Open HR › Loan › Loan Types

    In the menu on the left, select HR, then Loan, then Loan Types. Each card is one loan type, with its Max amount, Repayment range, interest rate and how many active loans an employee may hold.

    1. Loan Types in the Loan menu.
    2. Add loan type.
    3. A loan type card.
    4. Active or Inactive. Only active types can be applied for.
    5. Edit and Delete. A loan type that any loan uses can't be deleted; make it inactive instead.
  3. Add a loan type: amount and repayment

    Select Add loan type and fill in the top of the form.

    1. Title: what staff see, for example Salary Advance or Car Loan. Required.
    2. Max amount: the most an employee can borrow. Required.
    3. Max active loans per employee: how many loans (of any type) that are still open an employee may hold before applying for this one. Required, at least 1.
    4. Min amount: optional.
    5. Interest rate (%): a flat rate charged once over the whole loan. For example 5% on 300,000 over 12 months means 315,000 to repay, 26,250 a month. Leave it empty for no interest.
    6. Min repayment (months) and Max repayment (months): the range of months staff can choose. The longest allowed is 60 months.
    7. Minimum tenure at company (months): how long someone must have worked for you before they can apply, counted from their join date.
  4. Add a loan type: eligibility and status

    Scroll down to finish the form.

    1. Max applications per employee: how many open loans of this type one employee may have. Leave it empty to rely on Max active loans per employee only.
    2. Requires confirmed employment: meant to stop staff on probation from applying. Leave it unticked for now (see the warning below).
    3. Note: an optional description, shown on the card.
    4. Active: leave it ticked so staff can apply.
    5. Create.

    You'll see Loan type created.

  5. Choose who gets the MD alert

    At the bottom of Loan Types, MD notification routing lists the email addresses told when a loan reaches step 2. Select Edit recipients, type one address per line (or separate them with commas), and select Save. You'll see MD notification recipients updated.

    1. MD notification routing.
    2. MD email recipients.
    3. Save.

    If an address belongs to an employee in WbizManager, that person also gets an in-app notification. There is no delivery log, so check the addresses carefully.

  6. Give people the right to approve and pay out

    Approving and paying out loans is controlled by user roles, not by the employee record:

    • Step 1 (HR) and step 2 (MD) need the loan approval permission. The HR-Admin role sees Approvals (step 1) and Approvals (step 2); the MD role sees Loan Approvals (step 2).
    • Disbursements and Reports need the loan disbursement and report permissions. The Finance-Admin role sees Loan Applications, Loan Disbursements and Loan Reports.
    • Employees need the loan application permission to see Apply for a loan.

    Ask your WbizManager administrator to give these roles to the right people.

  7. Make sure payroll deducts repayments

    Once a loan is paid out, payroll takes the monthly instalment from the employee's pay each month until the loan is repaid (the last month takes only what is left). Your payroll team should check that the payroll template has a deduction for loans named Loan Repayment (code LOAN), so the deduction shows correctly on payslips.

What employees and managers see

  • Employees see only active loan types in Apply for a loan, each with its maximum. When they pick one, the form shows the allowed amount and months, the interest rate, and an estimated monthly repayment. If they don't meet a rule you set (time at the company, confirmed employment, number of open loans), they see the reason when they submit. See Apply for a loan and Accept a loan offer.
  • Line managers don't approve loans. See Approve loans, which explains who does.
  • The MD (or whoever has step 2) gets the email alert you set above, and approves in Approvals (step 2). See Approve loan applications.

If something goes wrong

MessageWhat to do
Title and valid max amount are requiredEnter a Title and a Max amount above 0.
Min amount can't be more than the max amountLower Min amount.
Max active loans must be a whole number of at least 1Enter 1 or more in Max active loans per employee.
Max repayment must be between 1 and 60 monthsEnter a number from 1 to 60.
Min repayment can't be longer than max repaymentMake Min repayment smaller than Max repayment.
Interest rate must be between 0 and 100%Enter a rate from 0 to 100.
Unable to delete: Loan exists for this configuration.Edit the loan type and untick Active instead.