Set up loans

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

Stage	Who	What happens	Guide
1. Setup	HR	Loan types, limits, eligibility rules, MD email alerts, who can approve	This page
2. Apply	Employee (or HR for them)	Picks a loan type, amount, months and purpose; eligibility is checked	Apply for a loan
3. Approve	HR, then MD	Step 1 (HR) and step 2 (MD). Either can lower the amount or reject	Approve loan applications
4. Accept the offer	Employee	Reads the offer letter and accepts or rejects it	Accept a loan offer
5. Pay out	HR or finance	Records the payout date, reference and method	Disburse a loan
6. Repay	Payroll, HR	The monthly instalment comes out of pay; HR can record other repayments or a payoff	Record loan repayments
7. Follow up	HR and finance	Applications, history, dashboard and reports	Manage 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

Message	What to do
Title and valid max amount are required	Enter a Title and a Max amount above 0.
Min amount can't be more than the max amount	Lower Min amount.
Max active loans must be a whole number of at least 1	Enter 1 or more in Max active loans per employee.
Max repayment must be between 1 and 60 months	Enter a number from 1 to 60.
Min repayment can't be longer than max repayment	Make 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.