Do All Businesses Provide a Wage Advance Option?

December 7, 2011 by  Filed under: Loans 

Often, when you find yourself in financial difficulties, it can be difficult to find a way out – both in the short-term and long-term. Whilst many choose to borrow money from friends, family and loved ones, others aren’t so lucky. If you don’t want to get a loan, or have already been rejected by the bank, where else can you turn? For some, their employers are the final option – but do they provide a wage advance option?

A lot will depend on your employers and the type of work that you do. For instance, if you’re only a shift worker without a fixed contract, it is unlikely that a company will be able to provide you with additional assistance. This is purely because they don’t have the guarantee of future work to cover your borrowed amount.

If you’re in a full-time contract, and have been for a number of months, maybe even years, then you are far less likely to walk away with a wage advance without working the necessary hours to cover the pay. This is purely because you are legally obliged to adhere to your employer’s terms, which will often include a minimum period of notice – often between one month and three, although some specialist businesses will be even higher. Therefore, even if you were to resign unexpectedly, you would still do the hours required to cover the advance.

What are the advantages of a wage advance?

First and foremost, a wage advance will give you the opportunity to pay off unexpected bills and cover a shortfall in cash, without costing you a penny. Unlike a bank loan, there is no interest to pay or processing charges to worry about. Most employers will be happy to give you the advance for your weekly or monthly salary as if it were your pay day. So there are no strings attached.

This is particularly useful in situations where you find yourself without the money to cover something that requires immediate attention and could end up costing you more, or impairing your day-to-day life if it isn’t sorted out. For instance, if the head gasket goes on your car and you don’t have the available cash to cover repairs, what do you do? If you use your vehicle for commuting to work or carrying out site visits, then your managers are likely to be more than happy to help you out to ensure that you can continue to carry out your duties.

However, you won’t always be asked to provide a full reason for needing the cash advance. It may well be that you have simply overspent and still have bills to pay, which could lead to charges and some long-term financial issues. In these instances, you might want to keep any such information confidential, which most employers will understand.

Are there any negatives?

The major issue with getting a wage advance is that it will be a long time until your next payday. If your salary is paid monthly and you get into difficulties in the first couple of weeks after you last received your wages, then you could have to wait six or seven weeks until you’re paid again. This is often too long for many, but more particularly for those who regularly struggle with their finances. Consecutive wage advances may become difficult to obtain, so you will often have to use this time to look for alternative ways of getting additional cash.

So what are the alternatives?

If you can’t get (or don’t want) a standard personal loan or you aren’t able to get an advance from your boss, you might instead consider a payday loan. These work in much the same way, although with the usual interest applied (often around 25%). They can be sorted out within hours, providing a speedy solution to any money troubles.They are discrete too, so nobody will ever need to know that you had to borrow cash if you are worried about this issue.

Vincent Norman is a freelance writer who writes for a number of finance businesses. For Payday Loans, he recommends Payday Power.

Article Source:
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