The state of the economy is stressing workers out, both personally and financially. Nearly half of Americans say they don’t have enough money set aside to cover a $1,000 emergency expense. When employees don’t have cash readily available, it impacts their ability to show up and focus on their job.
The industrial economy is suffering significant worker shortages, and employees are losing their jobs simply because a car won’t start or they can’t afford the tools required to do their jobs. No one should have to lose their job because of unexpected expenses.
If employees can’t access $1,000 in an emergency, your benefits package has a gap. Traditional lending wasn’t built for everyday workers; it was built for credit scores. BeneMoney is changing that.
Bridging the funding gap
Fortunately, more organizations are starting to listen to their employees. We’re seeing a growing demand from employees seeking financial assistance through their employer. Studies show that nearly 75% of employees want help with their finances, and 80% say they would stay with an employer that offers financial wellness benefits.
And while more organizations are adding financial wellness programs to their benefits mix, they’re missing actual loan programs. Lending through your employer is an ethical alternative to credit cards, payday loans and traditional bank lending, offering a model that’s both fair to employees and easy to implement for employers. You never really know what kind of financial stress your employees are going through, so giving options when they need them makes a huge difference.
At BeneMoney, we’ve created a no-credit-check loan platform that offers employees, including those with no credit or poor-to-average credit, access to funds in a secure, affordable way.
This alternative lending solution is unlike traditional lenders: we don’t pull a credit report. All employees can take out a loan as long as they meet the minimum job tenure requirements. With funds available within minutes, the program is simple and gives employees access to cash they otherwise wouldn't have.
No-down-payment loans are repaid directly from employees' paychecks over 1 year. This increases the likelihood that they won’t fall into a debt trap, giving employees the confidence to take control of their finances and make informed decisions.
Employers are realizing the need for programs like this, and the industry is stepping up. When employees feel financially stable, they’re more focused, engaged and more likely to stay with their current employer.
Why it’s important
From inflation to interest rates and high prices, the economy is making it difficult for everyday Americans to afford mortgage or rent payments, put food on the table for their families and even buy new work boots.
Whether it’s construction, manufacturing or healthcare, nearly every industry is impacted by the affordability crisis, and they’re looking for solutions. Employers can help be that solution by providing workplace benefits that meet employees where they’re at.
While bank lending or payday loans may provide immediate relief, in the long run, the problem doesn’t go away; it only persists. Astronomical interest only adds to the debt crisis. On the other hand, loans through your employer offer employees a real solution and, in the process, build trust and loyalty.
The impact on you and your workforce
BeneMoney is reframing lending from short-term borrowing to long-term financial wellness and employer responsibility. HR teams and benefits brokers see BeneMoney as a true partner, supporting employee well-being without adding administrative burden.
The value of an employee benefit like this is not related to how much employers pay their team. It’s about the fact that emergencies happen, and people from all walks of life can find themselves in a pinch where they need quick cash.
Our mission aligns well with what every good employer should strive to provide: the ability to support, educate and enable employees to break free from the cycle of debt and build a life of stability and financial freedom.
Rebecca Smith is the Director of Growth at BeneMoney.BeneMoney
