Compare the 5 best payday loan and finance companies of 2021
What is a salary advance? What is salary funding?
A payday advance is a new concept that is becoming more and more popular in 2021. The idea is that an employee can withdraw money from their monthly paycheck and receive it instantly instead of having to wait for the payment. end of the month. Often using simple mobile apps, employees can decide to withdraw as much as they want from their monthly salary without affecting the employer.
Payday loan companies are quickly replacing standard payday loans because employees are not subject to a credit check and are not subject to interest or debt when using payday loan companies. .
For employees who run into unforeseen spending issues during the month, payday advance software and businesses give them the ability to ease some financial pressure without it turning into high debt. A payday advance simply allows the employee to access the money he has already earned without receiving all of it at the end of the month.
Why Should I Use a Payday Advance Company?
Using a payday advance company has advantages for both the employee and the employer. For the employee, the benefits are clear; employees can access the money they earned earlier than before without having to pay back and take on more and more debt. It’s cheaper than the alternatives and the employees don’t go through credit checks.
For the employer, it makes your business more attractive to employees; this is a great benefit to your business and will help improve your hiring process as well as reduce turnover. Most importantly, offering your employees a pay advance will increase their happiness and put less financial strain on them. This, in turn, could cause employees to become more productive when they don’t care about money all day long.
How Do Payday Advance Companies Work?
As this is still a relatively new concept, payday advance companies differ in the way they operate. Some companies will charge the employer for using their services, and most will charge a fee for the employee when they withdraw money from their wages early. Some companies even offer employee loans at a much lower rate than a normal financial loan.
Once the employer has registered with one of these companies, employees will be able to download an app that will show them how much they have earned and how much they can withdraw. Employers are able to decide how much of an employee’s earned salary they can withdraw with many withdrawals capped at 50% of the money earned.
Payroll companies are becoming more and more popular and for this reason TechRound has found the 5 best payroll companies that you should use whether you are an employer or an employee:
Top 5 payday advance companies:
- Financing of salaries
Wagestream is currently the most popular payday advance company in use in the UK. With companies such as Bupa, Cafe Rouge and others using Wagestream to give their employees the opportunity to access their pay earlier. Wagestream has an easy to use mobile app that allows employees to track their pay if they wish. Wagestream also offers its users financial education services, including tips for saving money and decoding their payslip.
Employees can access 50% of their monthly salary early and are only charged £ 1.75 up front. Wagestream is currently the most successful payday advance company.
Hastee Pay only processes payday advances and in fact gives the employee free access up to £ 100 per month. Employers will give their employees an invite code to download the app, after which they will be able to see how much they can borrow, employers can set a maximum withdrawal amount but Hastee has no limit on this.
Some NHS trusts use Hastee, but Hastee charges employees 2.5% of all money taken as an advance on employee wages. This can make Hastee one of the more expensive options for a payday advance business.
3: Financing of salaries
Salary Finance does more than just payday advances, but also offers a great payday advance program. Although Salary Finance does not have a mobile app, you can log into your account on the website to track what you earn and what you can borrow in real time. There they have guides and advice on everything monetary with savings assistance as well as recommendations from insurance providers.
Employees are limited to 3 withdrawals per month and Salary Finance charges £ 1.49 per advance withdrawn. Many reputable brands and companies use Salary Finance and it is a great option as a Salary Advance business.
4: Revolut Payday
Fintech company Revolut is the latest company to get involved in payday advances by launching Revolut Payday. Revolut Payday tracks your wages in real time so you can check on your mobile app right after a shift to see how much you’ve earned. With Payday you will be able to withdraw up to 50% of what you have earned at any time and the employee will be charged £ 1.50 per transaction.
Revolut is a reliable company and its foray into the payroll advance market shows that it truly is a booming industry. Although extremely new, Revolut Payday allows employees to avoid using their credit cards or payday loans when they have financial worries.
Neyber is slightly different from the other payday advance companies on this list, as Neyber has yet to make the full transition to payday advances. This means that when you take part of your salary earlier with Neyber, you technically still get a loan. Employees do not owe money to their employer but to the company, which means that credit scores are affected and interest rates may be charged.
However, since the borrowed money comes directly from your paycheck, Neyber is able to offer incredible rates on loans, much better than the average payday loan company. Repayments are made automatically and although more complicated, Neyber remains a better option financially for employees and employers than other loan alternatives.
Are there any issues with using payday advance companies?
Although payday advance companies are increasingly used and popular, some employees may still experience issues while using payday advance features.
For example, all payday advance companies will allow your employer to see how you have used it and track your entries and exits while using the app. Some employees may not understand that their finances can be viewed without their discretion.
In addition, employees cannot use the Advance on Salary companies if their own company has not subscribed to them. Many companies still have not started using payday advances and as a result employees cannot access their salary early. If you are an employee and want this in your business, talk to your HR and see if it’s viable!
Will using my payday advance affect my credit?
No! The great thing about payday advances is that there is no interest and taking money from your payday has no effect on your credit score. You can withdraw money at any time, according to the regulations of the Salary Advance company, and use it for whatever you want!
However, using payday advances will not help if you have other debt and payday advances should be used wisely and responsibly.