Employees requests for loans or advances from their employers tend to cause major frustration. As they are not credit worthy to approach the banks, employees often get caught up with loan sharks which can result in life threatening situations.

It is also clear that the NCR (National Credit Regulator) and the courts have adopted a strict interpretation of the NCA (National Credit Act) and, as such, are likely to deem any employer-employee loan agreement that is subject to a charge, fee or interest as falling within the ambit of the NCA. This means that the employer will have to register in terms of the Act and the FSCA.

Employers should therefore, exercise caution when levying a charge, fee or interest on loans extended to employees so as not to open the proverbial can of worms. Employer-employee loans should therefore be structured in such a manner as to minimise the risk of being catapulted into the NCA’s arena of application.

Landoscore (Pty) Ltd is an NCR and SARS registered company that has successfully taken over many employers' loan books. Landoscore (Pty) Ltd facilitates an automated loan application process through a user-friendly website, eliminating the risk and administration from the employer as they act in terms of the NCR & NCA stipulations in assisting employees in proper and responsible loan and money management.

Allow Landoscore (Pty) Ltd to add value to your company through assisting your employees with financial wellness.