

Salary Advances
Access your salary as you earn it – an alternative to payday loans?
A host of companies are now offering to let you access part of your salary in advance – though for a fee. This guide runs through how best to use these salary advances, how they work, and how much they cost. For many, this could be a cheaper substitute for a payday loan, though some of the same money management dangers remain.
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What is a salary advance?
Salary advances – sometimes known as payroll borrowing – are a relatively new form of borrowing where wage advance companies work with your employer to let you access part of your salary as you earn it, rather than having to wait until your payday.
Your employer needs to be signed up with a company which offers this for you to be able to access it, but once it is, you can access your salary in advance whether you're paid weekly, fornightly, four-weekly or monthly.
It's billed as an alternative to payday loans, though the difference is that it's your own money you're 'borrowing'.
As these are salary advances rather than loans, it's not counted as credit, so you're not credit checked, and you don't pay interest. Instead, you pay a fee each time you access your salary early.
There's no chance for you not to repay, as the salary advance company sits on the payroll between you and your employer. So when you get paid, the payroll lender gets its money back – and the amount in your pay packet will be lower, as you took some early.
Here's an example of how it could work...
It's a new work week, and Walter Waiter earns £9 an hour working at a restaurant. He does a 10-hour shift on Friday, then looks at his salary advance app a few hours later. He can see he's earned £90 for the shift, and that £40 of it is available for him to access (his employer limits him and his colleagues to 40% of their salary as an advance).
Walter takes £30 of that £40 available as he needs to top up his electricity meter that day. However, he's OK for the rest of the week and doesn't take any further advances. On his weekly payday next Thursday, he's paid his full salary, less taxes and other deductions, and also minus the £30 he took as an advance, and the £1-2 fee he paid to access the advance.
Should you use these companies? Here's Martin's view...

'If you do it, only do it in a real emergency'
"Salary advances, though they're a very good alternative to payday loans, are not without their own issues. There's a moral hazard here which means the easy accessibility of the cash could lead to people letting go of their budgeting and using this too often.
"Be warned against doing that – it's far better to be in control of your finances than to need a system like this and pay for it. That's in spite of it being far cheaper than other alternative forms of quick finance (although not cheaper than a 0% credit card facility).
"It's very important to make a pact with yourself that if you're going to do this you'll only ever do it for real emergencies – a smashed window in your house that needs fixing, a locksmith to get in. Not new shoes, not a party you want to go to. And generally not for paying your bills, because bills are something you should be budgeting and planning for anyway.
"So I would certainly think if you were having to use a salary advance more than a couple of times a year there's an issue going on. Don't fall into the psychology of 'easy access means I have more money'. Ultimately, it doesn't give you more money. In fact, each time you use it, you pay a fee, so you actually get less money."
The eight salary advance need-to-knows
Which companies offer salary advances?
There are a fair few companies offering this now – but you don't get to choose which you go for, as you can only use companies your employer has partnered with (if, indeed, it's partnered with any). These are the major players...

Salary Finance
This site boasts a good line-up, with employees from many NHS trusts, and stores like Dunelm who can use its salary advance facility.
Like with many of the salary advance companies, Salary Finance lets you keep track of how much you're earning in real time, as well as how much is available to borrow, you just need to log in on its website.
Note that not all companies signed up to Salary Finance offer advances. Many sign up for other services, such as loans that charge interest and are paid back through the payroll. Make sure you're using the "Advance" part of its site. If it's not there, it's likely your employer doesn't offer it.
Salary Finance also has guides, tips and tools to help you budget, and will signpost you to savings and insurance providers too. If you've money to spare and want to start saving, then it'll help you save straight from your pay packet.
- How to sign up: Find your employer on the Salary Finance website
- Fees to borrow: £1.49 per advance, paid on each payday
- Maximum borrowing: 50% of salary (but employers can set this lower)
- Maximum withdrawals: 3/mth (but employers can set lower if they want)

Wagestream
This is one of the larger sites with more than 165,000 people able to access their salary early through its app. Big companies involved include Bupa, Café Rouge, David Lloyd Leisure, Holiday Inn Rentokil and many NHS trusts.
Wagestream has an easy-to-use app and says a lot of people who use it do so primarily to track their wages. It's especially popular with those who do shift work, and who get variable pay because of it.
It also lets users save money directly from their salary, and has financial education resources, for example, help on how to decode your payslip, or how to start saving.
- How to sign up: Employer emails a link to download the app
- Fees to borrow: £1.75 per advance, paid on each payday
- Maximum borrowing: 50% of salary (but employers can set this lower)
- Maximum withdrawals: Set by employer

Hastee Pay
Hastee Pay is generally one of the more expensive options, as it charges a percentage fee of the amount you get advanced rather than a flat fee. Though if you only need £100, or a little over that, then it's one of the cheapest options.
Firms it's partnered with include the Mitchells & Butlers pub chain and some NHS trusts. If you need an advance, use the app to see how much is available to borrow. You can then request up to that amount, and it'll be transferred by Faster Payments to your bank account.
- How to sign up: Get an invitation code to download the app from Hastee Pay
- Fees to borrow: £100/mth free, then 2.5% (of what you borrow, min £1)
- Maximum borrowing: 50% of salary (but employers can set this lower)
- Maximum withdrawals: Unlimited, but employers can set a limit
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