3 Reasons You Need to Offer a Salary Advance to Your Employees

Today, whenever you require emergency funds to meet a financial emergency, a personal loan is one of the first options you might consider. This is no surprise, given the benefits one receives while taking out a personal loan today. There is the factor of minimal documentation, which, along with lower processing time, ties into the overall factor of convenience. In short, personal loans are a very convenient source of short-term funds, should you need it.

However, you’re also forgetting one very simple thing: even though getting a personal loan has become much easier today, the approval of your loan application, to a large degree, still depends on your credit score. What will you do if you aren’t eligible for one? Well, there’s still another option you can consider – a salary advance. A salary advance is when your employer pays you a part of your upcoming salary in advance, to accommodate for any urgent financial need you may be facing. In most cases, this amount is deducted from your upcoming salary for repayment. If you’re a company considering offering your employees this benefit, we’ve listed three reasons why you should. Read on:

1.   It Makes Your Employees Happier

This is one of the biggest benefits you, as an employer, can get by offering your employees a salary-based loan. If some of your employees aren’t eligible for a personal loan or borrowing against a credit card, a salary advance facility might be just what they need. Also, such a facility helps them become more productive at work. This will be possible only because they won’t be spending time stressing out about securing emergency funds, which in turn will make them happier, free to focus on their work.

2.   The Process is Easy to Set Up

Setting up a salary advance program is relatively easy as compared to other bonus or incentive programs. You only have to set up parameters defining who is eligible and under what circumstances, along with defining what the employees can expect while applying for a salary advance. Then there’s the question of loan amounts and repayment tenures that you can offer. Also, whether or not you want to charge interest on the loan is also something you need to consider. Ultimately, just make sure that the policy is uniform for all and non-discriminatory in nature.

3.    It Helps You Stand Out From the Crowd

In today’s day and age, where companies are cutting down on incentive programs and benefits as a means to cut costs, offering such an attractive facility (offering them cash as and when they need it is pretty sweet) can easily set you apart from your competitors. A salary advance programs may give existing employees a reason to stick around with your company, and even offer potential candidates a strong reason to consider joining!

Wrap Up

If you want to start a Salary Advance program for your employees, or you’re just a salaried professional looking to avail a salary advance, KreditBee is an option you can consider.

KreditBee’s entire loan application process, from profile creation to disbursal does not take more than 15 minutes, and it is completely online on the KreditBee mobile app. You just need to download the app from the Google Play Store, complete your profile, and relax. If you wish to learn more about our salary advance loans, please write to us at [email protected] or simply call +080 44 292 200.

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