Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask boss for a loan

54 replies

Krahkrah · 18/07/2022 18:42

I need a loan in order to help my dd out at Uni as it turns out she will have a bit of a cash flow problem this coming academic year. It’s a couple of thousand pounds I will need to ask to borrow, until my dd receives her 3rd student loans instalment next spring. WIBU to ask my boss (owner of the medium sized company I work for) to loan me the money? We are on good terms obviously, and I believe he has loaned money to other employees in the past. Is there any reason anyone can think of I shouldn’t ask? I realise I’d be making myself a bit vulnerable in terms of being in debt to the company, but I’m not looking to change job in the near future. Wish I didn’t have to ask to be honest but don’t see an alternative way at the moment.

OP posts:
Darbs76 · 18/07/2022 18:43

If he’s done it before I guess he’s not against people asking. I’d be a bit apprehensive about doing it personally bur if it’s ok to ask then go for it

Namechanger355 · 18/07/2022 18:46

I would feel uncomfortable but that’s because there is no precedent

if you are sure he has done it before then would seem ok

Shoxfordian · 18/07/2022 18:46

I wouldn’t ask him for a loan; tell your daughter to get some part time work or put it on a credit card then pay it off; has to start being an adult sometime

user1471462115 · 18/07/2022 18:47

Can’t she get a job now, and earn the money herself ?

redskyatnight · 18/07/2022 18:48

I wouldn't unless you are sure that there is precedent for it.
Can you daughter not raise the money herself in some way?

HotStickyMess · 18/07/2022 18:49

I really don’t think you can ask your boss for a loan until next spring, it’s a bit different if it was just an advance until payday

your adult DD needs to sort this. Plenty of vacancies around for her to get a weekend / evening job

MadMadMadamMim · 18/07/2022 18:50

I think it would be an awkward conversation to have, to be honest. I'd be embarrassed to ask my boss. He's not really responsible for lending money. Can you not take out a credit card loan?

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

Palegreenstars · 18/07/2022 18:51

I know plenty of companies that do / have done this. You could ask what their policy is on loans as a light way of seeing where you stand.

Blackdiame · 18/07/2022 18:52

If you got laid off or sick how would he the money back?
How would it be accounted for in his business accounts?

Can't imagine anyone would ever do this. If you need money go to your bank.

WinterMusings · 18/07/2022 18:56

When I had my business, I lent several staff member money. Some short term, some longer. It always worked out fine. It doesn't hurt to ask.

YourUserNameMustBeAtLeast3Characters · 18/07/2022 18:58

If it was something that stopped you working I think it would be fair to ask for a loan - eg car broken down and you need it fixed to get to work. And accepting that the answer might well be no.

But to ask to borrow for your daughter is a bit much. Your boss is not a bank (presumably).

I had a nanny (which is a much closer/ more dependent relationship than most employer-employee) and when her husband lost his job I did say to her that I’d happily lend her money if she needed it - but that would have been for food, rent, bills. I wouldn’t have offered for her uni-aged child.

Misstes · 18/07/2022 19:00

Just be prepared for how awkward it might feel working there if they say no to you.

MsFrenchie · 18/07/2022 19:00

I’d be quite unimpressed to find that one of my staff was so bad with money that they couldn’t even absorb the fluctuations in a student’s needs, in much the same that that you are presumably very disappointed at your daughter’s half-arsed attitude to her finances.

If you think it’s not going to be an issue and you have no other choice to do this or have your daughter be homeless, then needs must, but you and her maybe need to use this as a wake-up call to get your lives in order.

Singleandproud · 18/07/2022 19:00

Can you get one with First Direct for their low interest rates. Take out £7000 (to get the lowest interest rate) and then pay straight back what you won't need.

FatAgainItsLettuceTime · 18/07/2022 19:01

What if your daughter doesn't or can't pay it back when she gets her third student loan instalment, would you be able to cover it?

MsFrenchie · 18/07/2022 19:02

Why are you not using a credit card or a bank loan? This would be the normal thing to do.

nca · 18/07/2022 19:02

Has your daughter got a summer job and a part time job at uni?

IcedOatLatte · 18/07/2022 19:03

Blackdiame · 18/07/2022 18:52

If you got laid off or sick how would he the money back?
How would it be accounted for in his business accounts?

Can't imagine anyone would ever do this. If you need money go to your bank.

Lending employees money is a thing, there are even special HMRC rules for it. I know someone who has done this, slightly different as he has a connection to the boss outside of work but the mechanics are the same regardless of who the employee is.

LIZS · 18/07/2022 19:09

Will she not get an autumn payment? Can she earn some money in the interim? It seems unprofessional of him to loan money to employees and he might need to follow credit regulations.

LittleMissA · 18/07/2022 19:11

I do payroll for a number of companies. At least one does loan money to employees, usually around £1-2000. We then collect it back through the payroll typically at £200 a month until it is repaid in full.

I'm not sure many bosses would want to wait until spring before they get any of the money back tho!

As I put it through the payroll it will show on the employees payslips so if you need to remortgage, move in the near future it may be something you need to consider. Your boss may be happy to do it more informally but most would want a clear record so there is no disagreement over what has been paid.

nca · 18/07/2022 19:13

That's a good point. She will be paid in the autumn and paid again early January.

Hellosunshine1993 · 18/07/2022 19:19

Won’t she then have the same issue in Spring, if her loan then goes to paying him back?

Original poster
Krahkrah · 18/07/2022 19:23

Thank you all for your replies. Some very judgemental ones too from people who know absolutely nothing about me or my DD’s situations.

I agree it would / will be a very awkward conversation, which is what puts me off asking. However he knows about a few things that have happened in my life in recent years and at the time did offer to help in whatever way he could, which I presumed would be financially, with a loan, or something, although he didn’t say this. A colleague did have a loan through the company years ago but has since left so I can’t ask them about it. My dd is looking into getting a job in the autumn. This money problem has been put on her quite unexpectedly through no fault of her own. She’d planned and budgeted but not allowed for having to pay 4 months rent in advance, only the one. I may look into taking out a credit card or loan through a bank as I’m dreading talking to my boss and don’t really want him knowing my business.

OP posts:
BoxOfCats · 18/07/2022 19:35

Why is she waiting until autumn to get a job when she needs one now?
As a student I never would have asked my parents to sort this out for me unless I was absolutely desperate.

nca · 18/07/2022 19:36

Has she got a summer job?