If you need to borrow money from your boss, exhaust all of your other potential financial resources first. Employers may not be willing to take a financial risk on an employee. It also may cause a strain in your working relationship. However, some workplaces make a regular practice of loaning money to their employees and have found that morale and productivity have benefited from doing so, according to BVonMoney.com.
Secure a bank loan if you are eligible. Public assistance such as food and nutrition programs for families and mothers, housing assistance or temporary welfare payments, may be other options to help you during your time of financial strain.
Approach your employer’s human resources department or your supervisor to ask if there is a loan program or payday advance option in place. Some smaller companies may offer loans with an annual cap on how much you can receive each year since they do not have as many financial resources, such as debt counseling or credit unions, to which to send employees, explains BVonMoney.com. If your company does not have a loan program in place, meet with your boss or owner of the company privately.
Write a repayment plan. Work out how much will come out of each paycheck until your loan is paid off or how much you will pay out of pocket on a regular basis. Your boss may have legal limits on what can be taken out of your pay check each month. Present your repayment plan to your boss as you truthfully explain your situation.
Pay off your loan as quickly as possible. Remember that you will be living on less income each month until the loan is paid off. Factor that into your monthly budget.
- Ask only once. Do not make it a habit to approach your boss to request money.