Financial Hardships? How Employee Loan Programs Can Help

Employee Loan Programs And Addressing Financial Stress

Helping employees overcome financial hardships will be beneficial for both the worker and employer. Employee loan programs are a great start.

When it comes to business, employees are among a company’s biggest assets. So, it is important to provide assistance and support when they need help.

Financial hardships are not uncommon. In fact, around 78% of American workers are living paycheck to paycheck. Turning to lenders is one of the solutions that people often think of. However, there is an option that is becoming more common nowadays – an employee emergency loan program.

How It Helps?

Providing employee loans can be beneficial to both parties - the employer and employee.

By offering accessible and favorable loans to employees, a company helps alleviate their financial stress. The effects of financial stress are not only personal. It can also lead to a lack of focus at work, increased absenteeism, and low productivity.

Helping employees, even with their financial issues, lets them know that the company cares. Thus, it helps build loyalty. So, offering loans is also a good retention strategy.

What to Consider?

Starting employee loan programs can be challenging. Here are some things to consider:

 

• Multiple Loan Requests – Prepare to receive multiple loan requests from various employees. Every employee has needs and responsibilities. Once you grant a loan to an employee, others will start forwarding requests. We make this process easier by offering a program that requires low management hours.

• Qualifications – You have to be clear about the criteria for your employee loan program. However, you should also take into consideration the reason why an employee is borrowing money. For instance, emergencies are considerable. We have transparent approval guidelines which limits the stress of an employer, and guarantee employees have quick access to emergency loans.

Getting Started!

As stated earlier, starting an employee loan program is not an easy task. Going at it without any preparations can lead to disaster. So, working with a reliable third-party company like us may be the best way to get started.

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

The Transparency Of Access Loans

The Importance Of Transparency In The Finance Service Sector 

We believe in the importance of transparency to help you make right financial decisions. Read on to learn how we guarantees transparency!

In 2019, 78% of workers in the US lived paycheck-to-paycheck, and federal employees are not exempted. Without savings or an emergency fund, you may find yourself at a loss when an emergency expense comes up. When you do, don’t lose your cool. Choose a lender you can trust.

The Importance Of Transparency

Nowadays, there are a lot of untrustworthy lenders preying on desperate workers in need of cash. They offer rates that are only good at face value but are, in truth, designed to make repayment difficult. This is the reality that has been plaguing the industry for years. It is no surprise, then that HousingWire reports that 92% of Millennials did not trust banks and lenders. Indeed, the financial service sector needs to step up in building their customers’ trust.

Transparency for lenders entails being upfront about all the terms of the loan, including additional fees. This way, customers can make well-informed decisions regarding their finances, allowing them to select the best option. If they do not end up feeling cheated on, they will have a positive experience with loans, and thus, not hesitate to apply for another one in the future.

With this insight in mind, we have set forth to be as transparent with customers as possible.

Our Transparency

We provide affordable loans for federal employees and public sector employees. Access Loans provides federal and public sector employees access to affordable loans, regardless of their credit score. Here are the benefits of applying for a loan with us:

• Fast and easy application process

• No hidden costs

• Flexible payment plans

• Same day funding for qualified customers

Transparency has always been part of Access Loans’ core values. With a mission to inspire financially healthier communities, it is important for us to encourage customers to make healthy, well-informed financial choices. To achieve this, Access Loans has made the application process, the requirements, and most importantly, the loan terms simple and straightforward.

Furthermore, registration and licenses in the more than 24 states we operate in are available on our website. This way, prospective customers can check our legitimacy. Customer testimonials and reviews are available as well, to add to customers’ peace of mind that they are dealing with a trustworthy loan provider.

As a loan provider, we continuously strives to be honest and fair to its customers. Learn more about Access Loans’ loans for federal employees.

 

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

What Is Digital Lending?

How Digital Lending Can Improve Banking Services?

Digital lending is now at the forefront of the market. Learn what digital lending is, its 4 levels, and how it adds value to banking services. 

The year 2020 brought about a sudden shift to digital. Almost all fields have found ways to digitize their services, while people embraced it with welcoming arms. One of the leading trends in finance today is digital lending. Learn more about digital lending with us.

What Is Digital Lending?

Digital lending involves the management and processing of loans online. This process may cover various levels of lending—from online loan application to documentation, credit analysis, decision-making, pricing, and so on. We are one of the leading providers of digital lending for federal employees and public sector employees.

Both consumers and financial institutions acknowledge the convenience and opportunities that come with digital lending. However, it does entail a major investment such that some institutions or companies do not go fully digitized.

4 Levels Of Digital Lending:

Before a financial institution becomes fully digitized, they have to navigate four levels of digital lending.

Level I: The Digital Entry Point

The entry point for most institutions is building a digital front-end for their customer base. This may cover the initial steps of the application process, but the rest still relies on manual processes, such as phone calls or in-person visits. Because it still relies on manual processes, it still takes a lot of time to process an application, therefore falling short of customers’ expectations of digital services. Staying on Level I adds value to the institution, but digital lending could offer more.

Level II: Digital Workflow

At this level, the entire process has become digitized on the customer’s end, though they still need to upload documents. However, the back-end workflow remains manual so that employees manually review the documents uploaded by the customer. While a fully digital customer experience is a significant improvement for customers, the time and effort required to process an application remain a burden for the people in the back-end.

Level III: Automated Decisions

In Level III, front-end and back-end processes are digitized, such that both customers and employees benefit. With automated decisions, banks can process large amounts of data and make faster, more accurate decisions. In the end, it’s not just customers who are satisfied, but also the institution and its employees.

Level IV: Intelligent Decision-making

The last level involves more complex analytics. Investing in advanced technologies that can improve decisions allows banks to expand their loan portfolio with new and existing customers while keeping risk manageable. This allows them to drive growth and improve their services.

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

4 Reasons You Should Offer A Payroll Advance Program For Your Employees

What Is A Payroll Advance Program And Should You Offer One? 

A payroll advance program is a great benefit for employees. Read on to learn how Federal agencies can benefit from offering a payroll advance program.

Today’s world is unpredictable. Hardworking federal employees may suddenly find themselves in a financial bind and need money quickly. Offering your employees an alternative source of funding would steer them away from toxic financial habits like turning to their credit cards or unsecured loans. Here are the advantages of offering a payroll advance program for your employees.

What Is A Payroll Advance Program?

A payroll advance program is an employer-led benefit that allows employees to obtain part of their upcoming paycheck days or weeks ahead of time. This is different from a loan since a payroll advance merely allows an employee access to earned pay.

A payroll advance program is a valuable benefit for federal employees that presents little risk and offers lots of benefits for employees. However, setting up one takes up work and resources. We can help you set up a payroll advance program seamlessly. 

Benefits Of Offering A Payroll Advance Program To Federal Employees

1. Improves Productivity

Offering payroll advances for employees indirectly boosts their job performance. The impact of financial wellness on job performance is well-documented. If employees don’t have to worry about where to get funds to cover additional or emergency expenses, they can focus and work better in the office. 

2. Sends Out A Positive Message

Offering a payroll advance program shows your employees that you care about their well-being. By offering this simple program, you are helping them manage financial stress and keep them from falling into a cycle of debt. Sending out a positive message to your employees is a great way to foster a positive organizational culture.

3. Cultivates Loyalty And Boosts Morale

Giving your employees an alternative option for acquiring last-minute funds shows them that they can rely on you. You are no longer simply an employer but possibly a family, as you have probably been calling yourself. When employees know that their employer cares about them, they feel a sense of loyalty that will encourage them to stay and work hard.

4. Attract And Retain Top Talent

Federal agencies have been struggling with high turnover rates since 2011, adversely affecting their human resources. However, federal agencies can turn this around by beefing up their employee benefits with payroll advance program. Benefits that directly address employees’ needs are a great way to attract and retain talent in your agency.

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

Everything You Need To Know About Interest Rates

What Is An Interest Rate And How Does It Affect Your Loan? 

How well do you understand interest rates? Learn the basics about interest rates, how they work, and how they affect your loans in this article. 

Credit cards, student loans, mortgages, car loans, personal loans, and even allotment loans have interest rates. Do you know what interest rates are and can you tell if you’re getting a good interest rate? Read on to learn more about interest rates. 

What Is Interest Rate?

An interest rate is the amount lenders charge for your use of their money. It is expressed as a percentage of the principal or the total amount you borrowed. The interest rate, thus, affects how much you pay in total. The higher the interest rate, the higher you pay for your loan.

One way to calculate your loan’s interest rate, multiply the principal by the interest rate and term of the loan, this may not be the total amount you pay because you also have to consider the APR.

Interest Rate VS APR

People often confuse interest rates and annual percentage rates (APR). While the interest is the amount lenders charge you for using their assets, the APR is the total costs for borrowing said money. This includes interest rates, finance charges, document fees, processing fees, and other such fees. Like interest rates, the APR is also expressed in percentages.

How Interest Rates Work?

Interest rates rise or dip depending on the economy. The Federal Reserve Bank, who sets the federal funds rate, has the power to raise or lower interest rates based on the needs of the economy. Lower interest rates are generally indicative of recessions since it encourages spending, therefore stimulating the economy.

Ultimately, it is the bank or the financial institution that decides the interest rate applied to your loan. Interest rates differ based on the type of loan you apply for, the amount of loan you need, and your credit score. Generally speaking, if a loan is considered high risk (such as if you have a bad credit score), financial institutions assign a higher interest rate, and vice versa.

Are You Getting A Good Interest Rate?

As you may already know, there is no one-size-fits-all in loans. Each loan is unique; so gauging whether you are being offered a high or low interest rate involves calculating how much you will be paying in total—that includes both the interest rates as well as the APR. You also should consider if the rates are fixed or variable. 

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).