diff --git a/.changeset/brown-hats-grin.md b/.changeset/brown-hats-grin.md
new file mode 100644
index 00000000..9ff37704
--- /dev/null
+++ b/.changeset/brown-hats-grin.md
@@ -0,0 +1,5 @@
+---
+"@enzymefinance/sdk": patch
+---
+
+Arbitrary loan encoding
diff --git a/packages/sdk/src/Portfolio/Integrations/ArbitraryLoan.ts b/packages/sdk/src/Portfolio/Integrations/ArbitraryLoan.ts
index b713c7f1..28f7b7e0 100644
--- a/packages/sdk/src/Portfolio/Integrations/ArbitraryLoan.ts
+++ b/packages/sdk/src/Portfolio/Integrations/ArbitraryLoan.ts
@@ -67,7 +67,7 @@ export function configureLoanEncode(args: ConfigureLoanArgs): Hex {
     args.amount,
     args.accountingModule,
     args.accountingModuleConfigData,
-    stringToHex(args.description),
+    stringToHex(args.description, { size: 32 }),
   ]);
 }