A different credit institution

It is common for employees to request an advance payment of their future salaries from the accounting department of their employer. This necessity is particularly common in companies that employ low wage personnel, such as factories and security and cleaning services providers.

The approval of such requests depends on the company’s liquidity, therefore on most occasions the requests are forwarded by the accounting departments to management for approval and are ultimately denied.

Now in Britain Wagestream offers a solution. A credit institution that offers to employees an advance payment of their future wages.

Wagestream lends money to employees with a pledge against their future salaries and withholds the amount of the loan from their payroll on a monthly basis. Wagestream lends up to 40% of the monthly salary and subsequently withholds the amount from the salary of the employee. Employers have no obligation to Wagestream.

In this manner employees do not request money from their employer but from an independent credit institution, therefore they feel more comfortable to request a loan and are more likely to be given one.  Moreover, they receive money without a financial burden to their employer.

On the other hand, employees say that they are happier with their jobs, because they are given the opportunity of easy access to their future salaries, should the need arise.

Many believe that this is a service that also has a humanitarian aspect, since it helps to reduce the financial problems of a low-paid and vulnerable proportion of the population.

However, a reduction of the financial problems of low wage workers will only be ensured with an actual pay raise and not just with convenience loans.