4 Benefits of Offering a Salary Advance to Your Employees

In today’s day and age, if you need immediate short-term funds to take care of any sort of financial emergency, there are a number of avenues available that you can explore. You can choose to take out a personal loan or borrow against your credit card. Of the three options that have been mentioned, personal loans are obviously the most preferred option, thanks to the host of benefits they offer. Even so, have you ever wondered if there was perhaps a fourth option, something even better than a personal loan? Yes, that’s right. If you can’t avail the options mentioned above, there’s another alternative to short-term funds you can consider if you can’t avail the options mentioned above – salary advances.

A salary advance is a kind of loan where an employer pays his/her employee a portion of their salary in advance, in the event of a financial emergency. It’s very common for employees to need financial help from time to time. Some companies have tapped into this opportunity of helping their employees by offering them salary advances or loans, and in turn, are reaping a host of benefits. We’ve listed out for of them for you. Read on.

1.Increases employee productivity and focus

This is one of the biggest benefits that companies that offer salary advances to their employees enjoy. Offering your employees financial assistance when they require it definitely boosts their happiness, productivity, and focus at work. If one of your employees is worrying about their child’s upcoming school fees payment or a missed EMI payment, chances are that that’s all their doing – worrying. As their employer, if you step in and help them with a salary advance loan, all their stress will disappear, and they will finally be able to fully concentrate on work.

2.Impacts recruitment and retention positively

A salary advance is a low-risk borrowing option that both your employees as well as future employees will really appreciate. At a time where most companies are rolling back perks and benefits in an effort to reduce costs, offering your employees the benefit of financial assistance in their time of need will really give your company an edge over its peers in terms of recruiting and retaining new and existing employees respectively.

3.Boosts employee morale and fosters loyalty

Offering your employees the benefit of a salary advance loan sends out a message to them that in case they are troubled by financial woes, they can even approach you (their employer) apart from the alternatives they would usually consider for short-term funds (personal loans, credit cards, etc.) This will give them a reason to stick with you and will boost their morale considerably.

4.Shows that you care about employee welfare

When you offer your employees financial assistance in the form of salary advance loans, you are essentially also contributing to their financial wellness. This automatically does wonders for your company’s image, brand, and social standing, because it sends out a clear message that you care about your employees enough to offer them the benefit of a salary advance loan.

In Conclusion

Even though the benefits of a salary advance cannot be denied, it must be noted that not all companies offer this facility to their employees. Whether you’re an organization looking to partner with someone to start a Salary Advance program for your employees, or 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 10 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 help@kreditbee.in or simply call +080 44 292 200.