Cash Advance

Companies may from time to time grant cash advances to its employees. Cash advance policies might differ from company to company but they usually share a common objective of providing emergency funds to assist the employee in meeting work related or, in exceptional cases, personal expenses.

Cash Advance Application Form

The employee is usually required to submit an application for cash advance, in a format determined by the company, for approval by the relevant department. A sample of such application is provided below.

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Head, Human Resources
Name of Company
Address

Dear Sirs,

APPLICATION FOR CASH ADVANCE AND AUTHORISATION OF SALARY DEDUCTION

I, the employee whose particulars are set-out below, hereby apply for a cash advance in the sum of [amount of advance] (“Advance”) for the purpose of:
.....................................................................
.....................................................................
.....................................................................

Name :
Staff No. :
Department :
Basic Salary :

In consideration of the Company granting to me the Advance aforesaid, I hereby agree, covenant and undertake to repay the Advance by ……………… equal monthly installments of [amount of monthly repayment] each (“Monthly Installments”).

I hereby irrevocably authorize the Company to deduct the Monthly Installments from my salary effective from the ............... salary.

In the event that I cease to be employed by the Company for any reason whatsoever before the Advance is repaid in full, I expressly agree that the whole of the balance then outstanding of the Advance shall become immediately due and payable forthwith failing which interest at the rate of ................ per annum shall be chargeable on the balance then outstanding until full settlement of the Advance together with the interest so charged.

Yours sincerely,

Name :
Date :

-- END of sample cash advance application form -----