Workplace loans become more accessible and affordable thanks to Wagestream's innovative lending product
Wagestream Introduces Enhanced Workplace Loans to Tackle Inaccessible Credit
Wagestream, a leading player in workplace finance and wellbeing, has launched an enhanced version of its Workplace Loans product to provide a clear solution to the issue of inaccessible credit. The product, which was funded with £300 million debt financing from Citi, is now available to Wagestream's entire UK client base.
The enhanced Workplace Loans offer affordable, workplace-based loans that avoid excessive fees and high interest rates, designed to fit employees' earnings cycle and ability to repay. By embedding these financial services within employers, Wagestream aims to democratize access to fair credit and enhance the financial wellbeing of low and middle-income workers.
One of the key features of the enhanced product is the direct settlement of loan repayments from salary. This reduces the risk of missed payments and the negative impact on credit scores. A direct debit is set up as a secondary safeguard to ensure loan repayments are met.
Individuals with thin credit files and on low and/or variable incomes are most affected by credit exclusion, with up to 30% of UK adults struggling to access mainstream credit. Wagestream's product represents a departure from traditional lending models that often penalize borrowers.
The system eliminates administrative burden for employers as payments are automatically reconciled within the payroll system. Wagestream's loans do not incur additional fees such as origination, early or late payment fees. The product is designed to help users avoid missing repayments.
Portman Wills, Co-Founder of Wagestream, stated that the company is pioneering a new era of fair, responsible lending. Wagestream launched workplace loans in April 2024 as an early access programme. The enhanced product launch is a clear solution to the issue of inaccessible credit.
Wagestream's commitment is reinforced with the provision of fair financial services to the everyday worker. The company aims to lead with industry superior features not commonly available through traditional financial institutions. The real-time access to wages and financial insights allows employees to manage their cash flow smoothly, reducing financial stress and reliance on predatory lending.
Integration into employees' daily financial life promotes financial wellness and helps maintain focus and productivity at work by alleviating money-related anxiety. The product supports fair, transparent lending by using workplace data to offer loans tailored to individual financial situations, promoting responsible borrowing.
Overall, Wagestream's enhanced Workplace Loans offer a fair, affordable alternative to traditional lending, providing a clear solution to the issue of inaccessible credit. The company is committed to delivering fair financial tools for the everyday worker, leading the way in responsible, accessible lending.
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