Payroll Advance Lending is a service which allows businesses to borrow money to help pay their employee’s wages. This type of lending can only be used within the business to pay wages. In this blog, we will discuss how Payroll Loans work and their benefits.
How does Payroll Advance Lending work?
There can be various scenarios in which a business may need help when it comes to paying its employees. Whether it’s improving the business or redistributing funds within the company, Payroll Advance Lending could help.
Payroll Advance Lending is a simple process. Businesses can contact a lender to request the loan, after which the employer will be asked to provide the lender with their employee’s net monthly salary. Once the lender has the company details, the lender can calculate a loan percentage to offer the employer. After the business has been approved for the loan, the funds will arrive in the employer’s account immediately. Payroll loans can only be used within the business to pay employees. The percentage offered may differ depending on the lender.
The payroll community may notice that Payroll Advance Lending is a similar concept to invoice financing as they both give employers quick access to a percentage of funds. However, invoice financing is based on a percentage of an invoice and Payroll Loans are based on employees’ net monthly salary.
What are the benefits of Payroll Advance Lending?
Help to pay employees wages:
There may be many reasons why a company would need a loan but a Payroll Advance Loan simply helps employers pay their employee’s wages. Having those extra funds in the business would allow businesses to avoid the stress of worrying about how they will pay their employees and could in turn help to grow the company with additional employees.
Repurpose funding within the business:
Payroll Advance Loans can give employers the opportunity to repurpose funding within the business. By requesting a loan, employers could pay their employees with the additional funding and then use the money that was already within their budget for wages for something else. This could allow businesses to develop different elements of the business and allow them to grow.
Increased employee satisfaction:
Requesting a Payroll Advance Loan comes with a lot of benefits including an increase in employee satisfaction. This can be for many reasons such as employees getting that assurance that they will be getting their full wages on payday. A Payroll Advance Loan could also give employers the opportunity to offer employees an increase in pay with their added funding. These types of changes within the business allow employers to show employees their value within the company.
Income Group & Payroll Advance Lending
Income Group enables companies to access Payroll Advance Lending. Employers can reach out to our team at any time to find out more about our lending solution and advise whether your business would be suitable.