Scottish factoring firm Newton Property Management has launched an industry-first loan scheme for staff to help provide interest free access to funds.

The company, which has offices in Glasgow, Aberdeen and Inverness, has pledged a six-figure employee benevolent fund to provide financial support. The fund is in part aimed at helping staff members whose families are experiencing difficulties becasue of the pandemic.

Derek MacDonald, Newton Property Management’s joint managing director, said the purpose of the scheme was a way of saying to staff “we have your backs”, especially if their households are struggling with the adverse effects of furlough, as well as any loss of employment and income elsewhere.

He said: “We know workers whose families have been impacted by the pandemic. This scheme aims to help them deal with unexpected or difficult situations, and is eligible to all employees of Newton who have been employed by the company for at least a year.”

READ MORE: Rolls-Royce £4bn loss 'brutal' but flying hours to grow

Mr MacDonald added that the scheme capped loans at no more than two times the employee’s monthly salary. He added: “However, it’s not just for people suffering any financial knock-on effects of the pandemic. Whether it’s a deposit on an item, work on a house, or an unforeseen bill that’s an emergency, we want our employees to know we’re there for them.”

One Newton colleague who is accessing the scheme is Lewis Littlejohn. Lewis said he has recently moved home, is about to get married and start a family, and wants to put in a new kitchen.

He said: “For me a hugely beneficial part of the scheme is that it can help finance a much-needed improvement to my home. But I am also really pleased that Newton has made it available for those who may need to combat the financial effects of Covid, where household income might be down because of a job loss or furlough.”

Mr MacDonald also said: “Some of our staff, like lots of people in our society, aren’t regular savers. This scheme will allow colleagues to  access to funds which they can pay back over a set period of time interest free.

“We want to acknowledge through this scheme that we really value our colleagues. We hope through this they can see how much we appreciate the work they do and continue to do for us and our customers.”

The Herald: The building spans 123,850 sq ftThe building spans 123,850 sq ft

Single industrial building sold for £14.3m

The giant Titan logistics warehouse at Eurocentral in North Lanarkshire has changed hands in a deal worth more than £14.3 million.

READ MORE: Lothian Pension Fund (LPF) has acquired the 123,850 sq ft distribution facility, believed to be one of the largest modern industrial buildings in Scotland, from Windward Titan.

The Herald: Graeme Roy. By Gordon TerrisGraeme Roy. By Gordon Terris (Image: Newsquest)

Graeme Roy: Levelling up is much easier said than done

Rishi Sunak was able to breathe a sigh of relief last week when he was given a much more upbeat forecast for the UK economy than he might have hoped for.

READ MORE: Supported by the success of the vaccine programme, the Office for Budget Responsibility (the Government’s independent forecaster) now believes the UK economy is on track to return to pre-crisis levels of activity by mid-2022. 

Sign up

You can now have the bulletin and the top business news stories sent direct to your email inbox twice-daily, and Business Week for the weekly round-up on Sunday:

https://www.heraldscotland.com/my/account/register/