Should Entrepreneurs Reject Employee Loans?

[Suba]

In medium and large companies, it is common for employees to borrow money for their needs, these types of companies have abundant cash funds so that if there is an employee loan it will not disrupt cash flow, but in small companies, employee loans often disrupt the process or running of the business. Should entrepreneurs/businessmen lend personal money to employees or reject it, what do you think?

 

[King Belieal]

If the business is convenient with the integrity of the staff and has run proper checks on the staff, it is not out of place to lend money to such staff.

 

[Augusta]

Why not they should give them loan if that was on the agreement. Loans can really help the employees fare better and help them to grow

 

[Springtime]

Here, big corporations seldom lend money to employees. They have rules. But for small companies, the owner may lend money to his/her staff, depending on whether the staff is trustworthy.

 

[Min George]

It depends on the particular staff that is applying for a loan. Companies can decide to give loans to staff based on their reputation.