System service payroll advance is a way that employees’ can get money transferred into their accounts via direct deposit (or check) in advance from their employer directly or through a third party.
Some employers offer an alternative to payday loans. But should you use it?
Most likely an employee would use it if they are scrambling to pay last minute expenses.
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When I was working as a Controller of a country club, I had to give payroll advances to a few employees from time to time. It’s different than a payday loan because it was tied to our company’s payroll system and is written off on the next payday.
They aren’t really a huge risk because all parties know the next paycheck is coming which will cover the system payroll advance. In this article, we’ll go through the benefits of a payroll advance system in place for both the employer and employee — and what your options are if your company doesn’t offer one.
System Service Payroll Advance Offered By Employers
Many employers now offer payroll advances to their employees according to Wall Street Journal, “A growing number of companies are helping workers gain access to payroll advances and loans, reflecting concern over the impact money problems are having on productivity levels and worker retention.”
My previous company offered it because it helped our employees, and everyone faces emergencies and this is a much better option than a payday loan or an online installment loan and everyone benefits.
A happy employee and a company that has not lost any money essentially.
Thinking About Taking a Payroll Advance?
As an employee, there will be a lot of times where you need money today.
Whether your water pipe bursted or your roof is leaking and you need to get these fixed desperately, you have a few options when your bank account is low.
You can get a credit card advance or even a personal loan, but most online lenders take a few days and require a hefty application.
If your company doesn’t offer a system payroll advance, you may have luck with Zippyloan if you need money tomorrow.
What If Your Company Doesn’t Offer a Payroll Advance?
If you actually need money now, then you can opt for a personal loan. When you need money in a hurry ZippyLoan is where to go. You apply for a loan through the Zippy Loan site, if approved they send your loan application to one of many loan providers.
You review the loan details and e-sign if you like what you see. No risk in checking what offers you’ll get. You can borrow between $100 and $15,000 as soon as tomorrow. Loans service for up to 60 months.
ZippyLoan connects borrowers to lenders through their network of lenders. They’ll find you the lowest interest rate and is one of the best no credit check loan. You can visit ZippyLoan here.
System Service Payroll Advance — Is It Difficult?
It’s not difficult for either employees or employer.
Companies like Walmart and Comcast recently have begun offering paycheck advances as a benefit to their employees.
Paycheck advances are designed as an affordable alternative to short-term loans, credit card cash advances and bank account overdrafts as we’ve already discussed.
If you are an employer who is consider implementing this into your payroll system, then it’s a wise idea to do so.
Or, you can even make use of an external System Service Payroll Advance third party solution to handle the entire process for your employee and your business cash flow.
Consider both options and decide what’s best for your company and employees.
Best Features of a Payroll Advance
So what exactly are the benefits of a payroll advance?
Here is a list of the best features of a payroll advance.
It Is Not A Payday Loan
Employees do not have to face hefty interest charges that they incur when they take out a payday loan.
They Are Needed
With many Americans living paycheck to paycheck – as much as 78% of U.S. workers, according to a 2017 CareerBuilder survey – a benefit like a payroll advance could help cover emergency expenses. Also, according to the 2019 Charles Schwab Modern Wealth Survey, only 38% have built up an emergency fund.
What Are The Potential Pitfalls With Payroll Advance?
There has to be some downsides right?
Especially if you have an employee who always want to get an advance on their paycheck.
While payroll advances can help people who have occasional emergencies, it can also be used chronically like payday loans.
So it’s important that the payroll advance system in place is tied to the employer and its payroll system.
The Final Word
To chalk it up, a system service payroll advance is a software or a solution offered by a third party system that helps employers and employees bridge the gap during times of needs where money is needed.
It’s similar to a payday loan but does not burden the employee with drastic interest rates and fees and is tied to the employers payroll system.
By having a system payroll advance in place, it can lead to workers with less stress and more motivation at work. It doesn’t cost the employer any more money and every employer would benefit from having a payroll advance system in place.