Payroll loan company Lendly says the average loan is $1,000 and that the average employee pays it back in 26 installments of $62. (Photo: Shutterstock)
Major employers are increasingly providing loans to employees in an attempt to combat the negative effects of financial stress in the workplace.
A survey of 250 employers by the Employee Benefit Research Institute last year found that 12 percent already offer workers the option to get paid ahead of time, often for a small fee. Four percent of those surveyed said they plan to put in place accelerated pay in the future.
Similarly, 12 percent of employers reported offering loans to workers that are repaid (with interest) via payroll deductions. Six percent said they plan to offer loans in the future.
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