Workplace lending undergoes a transformation through Wagestream's offering of economical loans
Wagestream's Enhanced Workplace Loans Offer Fair, Responsible Lending for UK Workers
Wagestream, a leading company in workplace finance and wellbeing, has launched an enhanced version of its Workplace Loans product. This innovative offering aims to provide fair, responsible lending to low and middle-income workers, addressing the issue of inaccessible credit in the UK.
The enhanced Workplace Loans product offers a number of key features that set it apart from traditional financial institutions. Repayments are deducted directly from the employee’s salary, reducing the risk of missed payments and protecting credit scores. There are no additional fees, making borrowing more transparent and affordable. Flexible repayment schedules align with the individual’s pay cycle, providing a more manageable way to repay loans.
The product is integrated as an employee benefit offered through employers, making access to credit easier for workers who may otherwise struggle to obtain mainstream loans. Backed by a £300 million debt financing deal from Citi, the product aims to enhance financial stability for employees by pioneering features uncommon in traditional financial institutions.
Portman Wills, Co-Founder of Wagestream, commented, "We are pioneering a new era of fair, responsible lending. Our Workplace Loans represent a departure from traditional lending models that often penalize borrowers."
The product eliminates administrative burden for employers, as payments are automatically reconciled within the payroll system. A direct debit is set up as a secondary safeguard to ensure repayments are met. The loans do not incur additional fees such as origination, early, or late payment fees, offering a fair, affordable alternative to traditional lending models.
Up to 30% of all UK adults struggle to access mainstream credit, and the enhanced Workplace Loans product targets this significant portion of the population. Wagestream aims to foster genuine financial stability for millions with its Workplace Loans and deliver on its mission of fair financial tools for the everyday worker.
The product was launched as an early access program in April 2024, and following debt funding from Citi, it is now available to Wagestream’s entire UK client base. Wagestream's Workplace Loans represent a clear departure from traditional lending models that often penalize borrowers, offering a more accessible and affordable solution for low and middle-income workers.
The enhanced Workplace Loans product, launched by Wagestream, targets the UK's underprivileged workforce by providing fair, responsible lending options in the realm of business and finance. This innovation reduces the risk of missed payments, eliminates additional fees, and aligns repayments with the employee's pay cycle, leveraging technology to foster genuine financial stability for millions.
