Workplace lending undergoes a transformation through Wagestream's affordable loan offering
Wagestream, a leader in workplace finance and wellbeing, has announced the launch of its Workplace Loans product, providing a fair and affordable credit option for everyday workers. The innovative system, which eliminates administrative burden for employers and offers flexible repayment plans tailored to individual pay cycles, has been backed by a substantial £300 million debt financing facility from Citi.
The Workplace Loans product aims to address the issue of inaccessible credit for up to 30% of UK adults, particularly benefiting individuals with thin credit files and on low and/or variable incomes. By offering loans repaid directly from employees' salaries without additional fees or rigid repayment schedules, Wagestream's Workplace Loans reduce the risk of missed payments and negative impact on credit scores, fostering financial stability for employees.
Key features and benefits of Wagestream's Workplace Loans include:
- No additional fees: Avoiding hidden costs common in traditional lending, Wagestream's loans never incur origination, early, or late payment fees.
- Repayments aligned with salary schedules: Rather than fixed monthly payments, loan repayments are set according to individual pay schedules, providing flexible and manageable repayment plans.
- Repayment directly from salary: Loan repayments are settled directly from salary, reducing the risk of missed payments and protecting credit scores.
- Designed as a workplace benefit: The product is integrated as an employee benefit, helping companies enhance employee financial wellbeing and engagement.
- Backed by a £300 million debt financing facility: The funding line enables broad access to affordable credit.
- Targets financial inclusivity: Wagestream's Workplace Loans aim to serve those struggling to access traditional credit, promoting financial inclusivity.
Following debt funding from Citi, Wagestream's Workplace Loans are now available to its entire UK client base. Portman Wills, Co-Founder of Wagestream, stated that the company is pioneering a new era of fair, responsible lending, leading with industry superior features to deliver on its commitment to fair financial tools for the everyday worker.
[1] Source: Wagestream Press Release, April 2024 [3] Source: Wagestream Whitepaper, May 2024
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