Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners. These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.
Watch out when employees ask you if they can borrow money. It can mean that they have a desperate situation and that desperation can turn into disaster.
My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute.
One of my clients has an employee who about a month ago asked to borrow $1,500. In this case my client said no. Turned out the employee was desperate for money to pay for hospital bills for his wife who has cancer.
This past weekend, I caught him stealing $6,000.
Whether you loan them the money or not doesn’t mean they won’t look for more.
When employees ask for a loan, in my view you should never give to them, but whether you do or you don’t we business owners need to be vigilant and more aware about stealing when an employee asks for money.
Also in most states it is against the law to withhold a portion of pay to pay for an employee loan. So don’t think you have pay withholding as collateral.
And remember, the most successful business owners know their numbers.