Sometimes you may face the need to buy something that requires the money you do not have right now but will have in the near future. If this situation sounds familiar to you, maybe it is time to think about asking for an advance payment from your employer using the Employee Advance Form.
Many people prefer getting a loan from their companies instead of going to a bank and asking for credit there. There are multiple reasons to do so: for instance, you do not have to pay any interest rates when getting an advance payment from your company. Also, typically, receiving the money from the company where you work is much easier than from the bank (especially if you work for a year or more and are considered a trustworthy worker).
The advance form is a document that you complete and sign to make your request official and in writing. You can get the loan only by submitting this paper to your management.
There, you will write your personal details, the sum you are asking for, and the adequate payment method. Your application will then be reviewed and either approved or not.
We will tell you in detail how to fill out the form below. Also, we will provide you with some tips regarding communication with your supervisor and management about the advance payment. Keep reading to find out all the details.
Having an opportunity to use the form and request an advance payment anytime you need it would be way too simple. So, every company establishes its own rules and policy regarding the “employee-employer” relations, including the ability to ask for a loan.
For example, in some entities, you are allowed to request the advance money no more than twice per calendar year. Also, there are different loan types: some companies offer only temporary loans, while others provide permanent ones.
So, before asking for your first advance payment, ensure that you have familiarized yourself with the company’s norms and rules. If something is left unclear, you can always turn to the human resources department, where your coworkers will explain to you how often you can ask for the money and what your borderline is regarding the sum itself. The amount you may receive usually depends on your salary.
Before we move to the guide that describes how to fill out the employee advance template, we would like to share a couple of useful tips with you.
Before you apply to get a loan from your company, we advise that you review your relationships with the management and your supervisor. How long have you been working here? How does your relationship with your boss look like? Is the company in its best place to issue loans to employees? Think about these questions before asking for credit.
Okay, let’s consider that your relationships with the boss and the team are magnificent, and the company will be happy to help and support you in this difficult moment. Still, before you request the money, we suggest you think twice about your own position and your current situation that leads you to ask for a loan. Maybe you are considering a purchase that you can postpone and save money for to avoid loans?
As you already know, there is usually a limit for employees: you cannot ask for a loan too many times. Getting this information before you request the money is a good idea.
Having a chat with your supervisor or other coworkers before asking for a loan is a smart move, too. However, do not make it too informal. Among the possible questions, you can ask if they have applied to get an advance payment before, is it a common practice in the company, and so on.
Sometimes the answers you can receive from your supervisor or colleagues are much more useful than your own thoughts and considerations and can help you make a decision quickly.
Even if your company allows you to request advance payments a great number of times throughout the year still, we recommend you control your budget and purchase things wisely.
If you ask for the money too many times, it may easily become annoying for your coworkers, who constantly have to review your applications and spend time making decisions about your money.
Now that you know some details about the form and have learned our tips and hints, we will provide you with the guide that will help you to prepare the document. Download the template using our form-building software and get started.
Step 1. Insert Your Details
You, as a worker who seeks advance payment, should enter various personal details in this form. Step by step, you have to add the following information to the template:
Step 2. Fill Out the Statement
Below the chart where you have inserted your personal info, you will see a statement with blank lines. This statement expresses your necessity for advance payment. You should fill out this statement with some details about yourself and the payment.
Line by line, write your full name again, the sum in US dollars, and the payroll date. Then, indicate the number of emergency payroll advances that you are eligible for during the current calendar year and the allowed percentage of your earnings that the sum should comply with.
Step 3. Choose the Payment Method
You can select the preferred payment method in case your request is approved by your company’s management. The form offers three options: a physical check, a direct deposit, or an “other” field where you can specify what method is more convenient than the two above-mentioned options.
Step 4. Select the Deduction Method and the Responsible Person
In the following part, you can choose how the deductions from your wages will be made to repay the advance. There are two possible options, and you must pick one that fits you more. Also, write the person who you authorize to make deductions in the designated blank line.
Below, you will see another statement where you can also appoint a person who will be able to deduct unpaid advances from your wages if you somehow decide to quit the job.
Step 5. Sign and Date the Form
After all parts of the template are filled out, you can sign the document. Place your signature in the relevant line and insert the current date nearby.
When the form is signed, you have to pass it to your supervisor. They will review your request and your document. If everything seems acceptable to them, they will sign and date the form together with the human resources manager, and you will then get the money you asked for.