As the world of finance is changing, it is also changing how we use up our salaries. In recent years, a concept has emerged. People can now avail services like salary finance. There are salary advance services out there that are willing to offer employees an advance on their next month’s salary.
Whenever in need, an employee can take out money equivalent to their salaries from these apps without having to wait for the next month.
Salary advance companies have become famous in the span of 2-3 years. More and more employees are using these services now. Salary advance companies can definitely help out in the case of emergencies.
The best part is, to avail of these salary loans, employees aren’t credit checked, and they aren’t subjected to paying hefty interests.
While these services aren’t ideal for everyone. They can definitely help out those who are in sudden need of some extra money. Salary advance apps can prevent employees from taking on money from unsafe options.
A salary advance simply provides employees the money in advance that they are bound to receive at the end of the month.
What is Salary Finance?
You can consider salary finance as a type of loan. Employees can draw money from their future wages in the case of an emergency.
Salary finance is a great way for employees to get money whenever they need it. The Salary finance has become an incredible solution for those who need money before the month ends.
Salary finance software is integrated with organizations. An employee can take out an advance on their salaries before the payday. Salary finance allows employees to earn money whenever needed.
Why Should Employees Use a Salary Finance Software?
Using a salary finance service is beneficial to both the employees and the organization.
The obvious benefit to the employees is that they’ll be getting paid whenever they want. Employees don’t have to take a loan from outside sources and bury themselves in debt. They can just take out an advance on their salaries. It is a cheaper and far more convenient option and employees don’t need to go through credit checks.
For businesses, the advantage is salary advance makes the organization attractive to employees. Not every company offers this perk and employees love to be part of such an organization.
How do Salary Finance Companies Work?
Every salary finance company has its own way of working. Some companies ask for money from employers, while others charge a small fee from the employee based on how much money they take out. Some salary finance companies have even moved towards loan services.
For an employee to be able to take an advance on their salaries, the business must have tied up with one of the salary advance companies.
Employers can even decide how much salary an employee can take out. Most companies tend to put a limit on 50% of the total salary.
5 Best Salary Finance Companies
Wagestream is the market leader when it comes to salary advances. It’s the most used company in the UK. Businesses such as Bupa, Cafe Rouge, and others rely on Wagestream, it has built a reputation for itself.
Wagestream has an easy-to-use mobile app that allows employees to keep track of their wages. Moreover, it also offers financial education and tips on how to save more money.
Employees can get up to 50% of their salary in advance, and they just have to pay £1.75 per advance.
Hastee Pay is a purely salary advance company. It allows employees to take up to £100 for free. Employers will provide their employees an invitation code to download the application. Once that’s done, employees will be able to take advances on their salaries. Employers can choose to set a limit on advances, but as far as Hastee is concerned, there’s no limit.
Hastee charges 2.5% of all the money an employee chooses to draw. This is why we consider Hastee to be an expensive salary finance option.
- Salary Finance
Salary Finance is a great option. Not just salary advances, you can participate in a salary advance scheme. While we did feel a lack of a mobile app, you can log into your account and get real-time data access. If you want, you can also learn about how to manage your finances from the website itself.
Employees can draw salaries 3 times a month. For every withdrawal, there’s a charge of £1.49. Many brands in the UK rely on Salary Finance for providing their employees with the Salary advance feature.
Neyber is unique in its offerings. With Neyber you can take some of your salaries early, but it technically counts as a loan. Employees don’t owe money to their employers, but their credit scores are affected and interests are charged.
As the money that is borrowed comes out of your salary, you get amazing interest rates on your salary. Repayments are cut automatically from the bank. While some consider Neyber to be a bit complicated to use, it’s still a great service without a doubt.
- Revoult Payday
Revoult is a famous FinTech company. They’ve now entered the Salary Advance industry. Revoult Payday keeps track of your salary in real-time, and you can check the data from their mobile app. Revolult allows you to take out up to 50% of your salary whenever you want. You’ll have to pay £1.50 per advance.
FAQs about Salary Advance Companies
The short answer is no. There are some issues and they depend on how much you want privacy.
All salary advance companies will allow your employer to see how much money you’ve taken out and how you’re spending it. Moreover, employees can’t use salary advance companies if the company hasn’t signed up for a service.
The best thing about Salary advances is that employees don’t have to pay interest, and it won’t affect their credit score. You can take an advance on your salary whenever you need it.