How Employee Loan Agreements Can Boost Your Marketing Agency’s Success
How can creative marketing agencies like Shaparak Marketing benefit from understanding an employee loan agreement?
When it comes to the topic of financial understanding within a business context, creative marketing professionals are frequently dismissed as incapable. These individuals are often times not even asked to participate in high-level discussions about finances despite their top-level alter egos as hired marketing sales people. However, understanding the parameters of a fluid business deal is essential for successful marketing agencies as well as those agencies that strive to provide the highest level of service to its clients. News flash to naysayers in the marketing industry – It’s a sound business decision to know as much as possible about the inner workings of an organization you are working for or with. The beauty of this approach is that none are likely to know about the details of an employee loan agreement specifically as it pertains to your particular agency. This means that there is a golden opportunity to influence your clients in this area in a positive manner in the areas of empowering them to save money.
So, how do understanding the parameters of an employee loan agreements help your marketing agency? First, consider the fact that such an agreement could potentially provide an employee up to $50,000 as a tax-free compensation option. In a competitive industry that is constantly pitting employees against each other, this loan option can be a major benefit to the employee. That employee will appreciate the perceived security of being able to provide for themselves and will likely work harder to prove their worth and keep their job! More benefits for you. Knowledge of these types of issues can also bolster a better employment relationship between you and your boss. As for internal benefits, being able to offer your well-deserving team member a loan at 4.29%, which is the minimum federal interest rate on an employee loan agreement, could literally provide your team members with the opportunity to buy their 2018 Volkswagen Tiguan. Providing this level of assistance can provide significant benefit for your agency as well as your employee by decreasing commute costs and providing the ability to generate even more revenues for your agency. As a bonus, you can even make money on the deal by charging your team members 8.29%. Federal laws require that you charge the published federal interest rate on an employee loan. In this scenario, while your team member is enjoying a decrease in the amount of money that they are spending on a monthly basis, you are generating an additional $400 in revenue!
If you are doing the math, you will know that $400 of additional revenue will yield more than $2,000 in profit to your up and coming new employee. This is basically the equivalent of increasing their pay rate by 50 cents an hour, or $1,040 a year for a standard full time employee. How do you think that this boost in pay will impact your employee’s productivity? Such a high impact loan option will give your employees the opportunity to buy a home or save money for retirement, and give you the satisfaction of having helped someone get there! Congratulations – you know how to capitalize on this foreign concept known as understanding the terms of a financial agreement. Whatever employee loan agreement you are dealing with, make the most of it and enjoy your new profit center!
