Increase Employee Participation with Equity Loan Management Software

Jan 14, 2015 12:43:34 PM | Enterprise Platform

Make it easier for employees to fund and manage their Stock Plans with Equity Loan Management Software


Nowadays companies who want to promote equity compensation will lend their employees the funds required to pay for their equity transactions.

They do this via an interest-free or low-interest loan that assists participants to invest in their company.

Companies can alleviate the pain of setting up and tracking these loans by using the new Global Shares equity loan module.

How does it work? 

The Global Shares loan module allows companies providing loans to their equity plan participants to set up and track those loans in a cloud-based solution in conjunction with all of their other equity information. It also provides a front end statement for participants to view and understand the loan(s) they have with the company and highlights detailed information on any associated interest rates and loan repayments made by the participant.

Technical Features

  • Loan Types – Loans can be applied to an individual participant or alternatively to a share certificate. The latter is applicable if the company lends the participant the funds to purchase that share certificate
  • Multi-Currency Loans – The participant loan can be set up in multiple currencies. If it is for a share certificate, the system is clever enough to only allow the loan to be set up in the currency of that certificate
  • Loan Information – Multiple details are tracked for each loan including loan effective date, loan amount, loan reason and loan status
  • Multiple Interest Types – Multiple interest types can be set up for a loan, including simple and compound interest calculations
  • Participant Access – Participants can use their personal portal access to view their loan information online. Their Loan Statement identifies if they have loans against a specific certificate, as well as showing all of the critical loan information - loan status, loan amount, loan reason, detailed interest information and loan repayments made by the participant
  • Loan Repayment Facility – As a participant pays back their loans the payments are reflected in the system and the loan information is updated dynamically
  • Interaction with Sale, Transfer & Exchange – If a participant has a loan against one or multiple certificates the company may wish to prevent the participant from selling or transferring those certificates. The restriction module allows the administrator to inform the participant that a share certificate cannot be sold. They can also apply a restriction related to the loan to prevent its sale until the loan is repaid in full. 
  • Detailed Loan Reporting - The EquityAdmin system provides detailed reporting on all loan information stored within the system along with all associated interest payments and loan repayments.
  • Full Import Capability – No need to worry about getting your loans into the system as there is full import capability to allow you to bring all your loans into the system accurately and efficiently.



The Global Shares loan facility is designed to take away the pain of tracking offline loans and their associated interest and repayment calculations. Loans can be an important part of equity administration and this loan functionality provides the full range of capabilities - from setting up the initial loan, tagging it with interest calculations, providing a front end view for the participant and full transparency on the loan between the company and the participant.

The 24/7 online access, combined with its dynamic reporting and communications tools, makes this an all-around solution to increasing employee equity participation.


A quote from one of our IT Development team:

The Loan Module automates complex interest calculations by allowing the user to create loans with multiple interests & tax rates for the same loan, with different calculation types applied for different periods, taking into account leap years. 

 Simple Calculation: Uses the formula pn = p * (1 + i) * n, or Compound Calculation: Uses the formula pn = p * (1 + i)n,  where p is the initial loan value, I is the interest rate (in decimal) and n is the period (in days, months or years). 
The module is built in the latest .net technologies and we look forward to seeing clients all over the world benefiting from it.

Filipe Proenca,  Global Shares .Net Developer

A quote from one of our Share Plan experts:

"Global Shares has several clients who offer loans for the purchase of shares to promote share ownership amongst their employees. In the past, these loans and repayments were tracked on spreadsheets with excel based interest rate calculations, all of which was very manual and extremely vulnerable to errors. With the new Global Shares Loan Module on EquityAdmin, the software streamlines the loan process from the issue of the loan straight through to the final repayment with both the company and participant benefiting enormously from the full automation and 24/7 access to live calculations, reports and statements. The new loan software makes all our jobs easier!"

Karen Mortimer, CEP Global Shares Share Plan Analyst





Please Note: This publication contains general information only and Global Shares is not, through this article, issuing any advice, be it legal, financial, tax related, business related, professional or other. The Global Shares Academy is not a substitute for professional advice and should not be used as such. Global Shares does not assume any liability for reliance on the information provided herein.



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