To ask boss for a loan

[Krahkrah]

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.

I would do the credit card idea.

. I just have a gut feeling that bosses know their staff and can imagine a scenario with a broken down car or something, struggling to work; passionate and conscientious about their role, but the daughter/child scenario might hit another note of daughter then needing additional this, or that. Also, a hardworking employee is an object of sympathy, but some bosses might, at the back of their minds, think: "Is uni even a good idea, these days? Is it doing the poor girl any favours - what with loan debt, etc". Btw, I don't think this. Would be awkward for boss too, if he wanted to draw the line at offspring woes.

So sep- dec's rent needs paying now ? If so has she asked the letting agency /landlord if she can pay it out of Septembers loan payment ?

No, for reasons I won’t go into, and are not to do with her, but with her flatmates, they all have to pay the last 3 months rent now. Plus one upfront.

No-one knows nothing about your situations, everyone knows what you have written on here about it.

Why is your daughter not working in the summer? Why would you not take on evening or weekend work rather than borrowing money from work?

Why would you not borrow from your bank, or on a credit card?

But did they not have to pay a full term of hall fees in advance too?

Don't ask for a loan. You get a PT second job. Your daughter needs to get 3 PT jobs until studies recommence. You'd put your employer in a difficult position. They may not be able to afford to loan you money, then may feel guilty. Or, they may loan you the money, out of guilt, and be unable to pay their own or firm's bills. You risk destroying your work relationship for your daughter. The two of you need to find a better way that won't risk your work reputation.

In effect she is having to pay for 2 terms rent with only one term’s loan - the first term and the third term.

And yes she’ll get a job, and perhaps we’ll be able to pay back the loan quicker than next spring.

My current company and previous company offer loans

@TeachesOfPeaches do you happen to know what kind of interest rates they offer? Is it better than a credit card? (Although I’m kind of going off the idea now of asking my boss).

@Krahkrah unfortunately not, I've not taken the loan out myself

Then why not a bank loan, rather than a loan from your boss?

One obvious reason is not having access to mainstream credit. If that’s the case though, it’s because a full risk assessment views someone as being unlikely to pay it back.

If that’s the case it is both wrong to expose your boss to this risk, and a severe risk to your unemployment.

Look at it this way. You seem to have no savings, which means that you are spending everything that you learn. That being the case, where are you going to find the money from to pay the loan back?

If you genuinely are able to make significant spending cuts, then why haven’t you done so before to get an emergency fund together?

This just seems like a terrible idea all round. If you do have access to mainstream credit, then use it. If you don’t then please understand what this is telling you, and rather than borrowing get a second job, sell things, or just get your daughter to sort it out herself.

Sixteen hours supermarket work each weekend will get her two thousand pounds in about there months. Her bank will likely give her a cheap or free overdraft to make up any shortfall.

I think if so-called mates have led to the four months rent in advance, your DD should look to live elsewhere.

I think it is really inappropriate. Definitely look into a 0% card or getting an actual loan.

Yes, I wonder what the story is there. Damage to the property, perhaps, or failure to pay last time round.

OP, is another solution not for her to not live with whoever has caused the problem?

Unless you work for Barclays, don’t even consider it.

take yourself to the bank and get a proper loan

Why doesn’t she get a job now?

A question several people have asked, but that the OP seems not to want to answer.

I honestly can’t imagine having allowed my mother to need to go cap in hand to her boss like this when I was a student. It’s all a bit strange.

My company offers loans and short term advances but it's a massive company and they have a policy on it and so on. I had a loan from them in the past - I was increasing hours and the nursery wanted paid ahead of time as they do but I didn't have the wage yet to cover the expense. They didn't charge any interest, they gave me £500 and deducted £100 from my salary monthly.

Sorry I meant to add, I think this is something your DD should be approaching her bank about though. Maybe she can get a student overdraft. Or a job.

Why doesn't she get a student overdraft? Unless it's changed recently, it's normally 0% until after graduation then gradually reduces.

@MsFrenchie no they’ve not damaged anything, there was a complication and it means the landlord will need payment upfront for the last 3 months. They’re nice friends, but yes I agree could have done without this.

I’ve decided against asking my boss, thanks all for helping me think this through, mainstream credit card is the way to go and pay it off asap. I don’t think I could live with my boss knowing about my business.

She needs the money so she should earn or borrow it - officially, not from her mum’s boss via her mum. No one is being judgemental, they’re responding to the info you’ve given and answering the question you’ve asked.

The cheapest way to do this is likely to be to try to get a 0% card (there are often introductory offers available.) You can’t withdraw money against these, so what you need to do is use it for all of the things you normally pay for, which will then leave your cash for your daughter.

I’ve said further up that my dd will be getting a job. I don’t feel it’s my place to go into more detail on here.

My DS had this issue at end of his first year at Uni. He nor his friends had realised that when they moved out into privately rented accomodation it is paid for as 12 months not 9 months he 3 months rent in advance plus deposits in July (as well as all needing a parent guarantor) - the "4th term" when uni grants are paid for in 3 amounts every 3 months for the usual uni shorter term and student accomodation in halls is only charged Sept to end of June if that is when student stays for only.

It hit my DS in shock as well. His friends had rich parents who simply paid their rents for them but he does not so he had to suddenly find £1.5-£2k
for 1st of July!!

Your DD needs to work during holidays I'm afraid to pay this and to borrow some money. I wouldn't ask my boss for this - we had to take out loans to help him until he paid it back and budgeted better for the whole 12 months rent the next year and for overlap of the next deposit (old deposit takes longer to come back than when next deposit is due if moving private LL houses)