Compare The Top Salary Advance Companies For Your Employees

As prices rise across the UK, more people will be looking for ways to access extra cash ahead of payday.

A salary advance, also known as Earned Wage Access (EWA) is a short-term loan that allows employees to access a portion of their salary before they are scheduled to be paid. The amount an employee can access is usually calculated as a percentage of the work they have done in the month to date. 

For example, if they normally get paid on the 30th day of every month and they are applying for a salary advance on the 15th, they would be able to access 50% of their next payslip.

However, in order for your employees to access this loan, the company must be signed up to a salary advance programme.  

So, if you’re looking to work with one as part of your company offering, we’ve outlined some top options below. 

 

How Does A Salary Advance Loan Work For Employees?

 

The process of accessing a salary advance is actually quite simple, as long as the employer is signed up. As these loans are calculated based on guaranteed earnings, they are relatively low-risk and pretty quick to organise. 

Here’s how they work:

Step 1: The employer partners with a specific company to offer the service to employees.

Step 2: Employees use the software to apply for a loan based on the value of money they have accumulated in the month to date.

Step 3: Funds are released.

Step 4: The provider will automatically be paid back the owed money plus a small fee directly from the salary before it arrives in the employee’s bank account.

 

What Are The Pros And Cons Of Salary Advance Companies?

 

Most people might be wary of any company offering a loan, but salary advance companies tend to actually be seen as a huge draw for employees.

This is because they not only get quick access to their salary if they need it, but these loans also tend to be interest free, only asking for a small processing fee instead.

Most importantly however, salary advance companies are a great way to provide financial security to employees, without risking them finding predatory payday loans.

However, as with all financial services, not all salary advance companies are made equal, and it’s important to due the relevant due-diligence before signing up.

It might also be worth providing employees with financial literacy tools to make sure they are living within their means and not relying on these programmes to get by.

 

 

What Are Some Salary Advance Companies To Explore

 

 

Salary Finance

 

 

Salary Finance partners with companies to offer loans, advances, savings and financial education. That way, employees don’t just have access to funds when they need them, they can also build better financial habits.

When it comes to their salary advance, they offer up to 50% of earned pay before payday with a fixed fee of £1.69%, 0% interest and guaranteed payment within 24 hours.

 

Hastee

 

 

hastee is a company operated by Zellis, designed to offer early wage access and money management.

Unlike some other platforms, hastee works on a case-by-case basis with employers, agreeing the fees beforehand. Employers simply have to enroll hastee onto their payment system and then employees get access to their earned salary. The whole system is set up to be as easy as possible, helping employees borrow responsibly.

 

FlexEarn

 

 

FlexEarn gives employees access up to 70% of their wages as soon as they are earned and it is totally free for eligible employers to offer.

Each FlexEarn withdrawal comes with a fee, usually around £1.75. However, if employees choose to withdraw their credit in the form of gift cards, then this fee is removed altogether.

 

Level

 

 

Level allows employers to pay their staff on demand, helping them access money from their earned wages. Whilst the website does not specify what the withdrawal fee is, it works on a flat rate rather than interest, making it more affordable.

When it comes to speed, the website boasts payments “in seconds”, including weekends and bank holidays.

 

Wagestream

 

Wagestream is one of the biggest salary advance companies in the UK, helping both full-time and part-time employees access their wages early.

The app is entirely free for employees to download and charges as £1.75 fixed fee per transfer. Aside from regular finance, the app also allows employees to withdraw vouchers, which can help cut down fees.

The app is fast too, taking between a few seconds and a few hours for funds to reach accounts – making it a quick and easy process.

 

Revolut

 

 

As part of its offering, Revolut offers ‘Early Salary’ – a feature that allows users with participating employers to get their salary one business day earlier than usual.

UK-based customers simply have to add their salary to their account, which then allows them to set the programme up with their employer.

With no fees, users get to keep the whole amount and get paid 24 hours before payday, giving them slight financial relief.