Employee loans and salary advances, repaid through payroll
Employees apply from their profile, approvers set the amount and instalments, the employee signs on screen, and every instalment comes off the next pay run automatically.
- Apply and approve in one flow
- Signed loan agreement PDF
- Instalments deducted in payroll
How do employee loans and salary advances work in BusinessHRM?
An employee loan or salary advance is money a company lends to a staff member and recovers from future pay. In BusinessHRM the employee applies from their profile, an approver sets the amount and number of instalments, the employee signs the agreement on screen, and each instalment is deducted automatically as a Loan Repayment line in the payroll run.
What BusinessHRM does about it
BusinessHRM puts the whole loan on the employee record. The request, the approval, the signed agreement and the repayment schedule live in one place, and the payroll run reads the schedule itself. Each month the instalment appears on the payslip as a Loan Repayment line, the balance goes down, and the loans report shows what is outstanding across the company.
Why teams go looking for employee loans
- 01Advances are agreed in a hallwaySomeone asks for an advance, a manager says yes, and the only record is a message. Months later nobody agrees on what is still owed.
- 02Deductions depend on someone rememberingThe instalment has to be keyed into payroll every month by hand. Miss one and the balance is wrong; take two and you have an upset employee.
- 03There is no signed agreementWithout a signed record of the amount and schedule, a loan becomes a dispute the moment someone leaves.
How employee loans works
From request to the last instalment
Four steps, and only the first two need a person.
- 1
Employee
Apply from the profile
The employee picks a loan type, such as a salary advance, and enters the amount and the reason from their own profile.
- 2
Approver
Approve the amount and instalments
The approver confirms or adjusts the amount, sets the number of instalments and approves. Managers can also act on requests from the Android app.
- 3
Employee
Sign the agreement on screen
The employee signs on screen and BusinessHRM produces a signed PDF loan agreement that stays on the record.
- 4
Every payday
Instalments come off payroll
Each payroll run deducts the instalment due as a Loan Repayment line until the loan is cleared. Early repayment can be recorded at any time.
Loans, from the setup to the payslip
Real screens from a demo workspace.
Loan types you control
Define the kinds of loan you offer, starting from two prebuilt types including a salary advance, so every request follows the same rules.
- Prebuilt salary advance type
- Your own loan types
Requests start on the employee profile
The employee applies from their own profile, and the loan stays visible on that record next to their pay details.
- Loans tab on the profile
Repaid in the pay run
Approved instalments flow into the payroll run automatically and show on the payslip as Loan Repayment lines.
- No manual deduction each month
Approvals from a phone
Managers approve or reject leave and loan requests from the Android app, so nobody waits for them to be at a desk.
- Android on Google Play, iOS coming soon
Set up your first loan type in minutes
Start free, import the prebuilt salary advance type, and see how an instalment lands on the next payslip.
What you get with Employee Loans
Included on every plan, including the free Starter plan for unlimited users.
Loan types
Set up the loans you offer, starting from two prebuilt types including a salary advance.
Self-service requests
Employees apply from their profile with the amount and reason, so requests never arrive by chat or email.
Approval with instalments
The approver sets the amount and the number of instalments before the loan goes ahead.
Signed PDF agreement
The employee signs on screen and a signed PDF agreement is stored with the loan.
Repayment schedule
See each instalment and its status, record a prepayment, or mark an instalment as paid outside payroll.
Loans report
Outstanding balances and repayments across the company in one report.
What changes once it is running
- Deductions that never get missedPayroll reads the schedule itself, so each instalment comes off on time without anyone keying it in.
- Clear terms for both sidesA signed agreement with the amount and instalments means there is nothing to argue about later.
- Balances everyone can seeEmployees see what they owe, and finance sees the total outstanding without a separate spreadsheet.
Who it is for
- Employers who offer advancesCompanies that lend staff money or pay advances against salary and want it handled properly.
- HR and payroll teamsThe people who currently track loans in a spreadsheet and remember to deduct them each month.
- Large hourly and shift workforcesFactories, sites and service teams where salary advances are a regular request.
Ask what is owed
The in-app assistant answers with the loan data your role can see. Connect Claude through the MCP server for wider questions.
- In-app AI chat
"Which employees have a loan instalment due in this payroll?"
- In-app AI chat
"How much is still outstanding on my salary advance?"
- Claude, ChatGPT or Cursor via MCP
"List all open loans with their remaining balance, sorted by amount."
- Claude, ChatGPT or Cursor via MCP
"How much was repaid through payroll last quarter?"
Example prompts. The in-app chat answers questions and does not change records. Creating and updating records with AI happens through the MCP server, with the permissions of the person who connected it.
Employee Loans questions, answered
How are loan repayments taken?
Automatically. Each payroll run deducts the instalment that is due and shows it on the payslip as a Loan Repayment line until the loan is cleared.
Does the employee sign a loan agreement?
Yes. After approval the employee signs on screen and BusinessHRM produces a signed PDF agreement that stays with the loan record.
Who decides the amount and the number of instalments?
The employee requests an amount, and the approver confirms or adjusts it and sets the number of instalments before approving.
Can an employee repay early?
Yes. A prepayment can be recorded at any time, and individual instalments can be marked as paid outside payroll.
Can managers approve loans from a phone?
Yes. Managers can approve or reject leave and loan requests in the Android app, which is available on Google Play. The iOS app is coming soon.
Is there a report of outstanding loans?
Yes. The loans report shows loans and repayments across the company, so finance can see the total outstanding at any time.
Advances agreed, signed and repaid without a spreadsheet
Start free and let payroll deduct every instalment on time.
Free forever for unlimited users. No credit card required.