Imagine you need to cover an unexpected expense quickly. On your phone, you have the option to transfer part of your already earned wages straight to your bank account. Or you could walk into the payroll office, head down, and ask for a wage advance. Which option would you choose?
The difference between a traditional wage advance and accessing part of your earned wages anytime through the Advanto mobile app comes down mainly to flexibility, convenience, automation, and cash flow. Here are the key points of difference:
Frequency and availability
- Wage advance: The employee can request an advance in person, on predetermined dates. After attendance and other conditions for granting the advance are checked, the employee is paid a (usually) predetermined amount in cash. In some cases, the employee is also asked about the reason for the request, so the whole process is often associated with an unpleasant feeling of embarrassment.
- Earned wage access: With the Advanto mobile app, employees have continuous access to their earned wages at any point during the month. The app clearly shows employees how much money they can withdraw based on hours already worked, which supports better financial planning and reduces stress.
Administrative burden
- Wage advance: For a company, approving and processing advances represents an administrative burden. The accounting department has to record advances separately, process them manually, and settle them as part of the final payroll run.
- Earned wage access: The process is fully automated and places no burden on the company. The app itself calculates how much the employee can withdraw. At the end of the month, settlement happens automatically thanks to integration with the payroll system, eliminating the need for any further administrative steps.
Impact on company cash flow
- Wage advance: Providing advances can cause irregularities in cash flow, especially if a large number of employees request them at once. In addition, advances are most often paid out in cash, which is frequently demanding both logistically and in terms of cost.
- Earned wage access: The system does not disrupt the company's cash flow. Advanto provides the funds from its own resources and then settles with the company at the standard payday, bringing stability to the business.
Benefits for employers
- Wage advance: For employers, an advance mainly represents an administrative and financial burden, and providing it is not always advantageous.
- Earned wage access: The Advanto system removes the administrative burden, increases employee satisfaction, and improves their financial stability, which in turn improves their work performance and loyalty to the employer.
Advantages the whole team will appreciate
Thanks to the Advanto app, employees have easy access to the portion of their wages they have already earned, whenever they need it. Whether they're dealing with an unexpected expense or simply want more control over their finances, with Advanto the solution is right at their fingertips. This allows employers to offer a benefit that contributes to employees' financial wellbeing without having to deal with additional administrative burden or cash flow problems.
Earned wage access from Advanto changes the way we think about wages and employee benefits. It allows employees to plan their finances effectively and helps companies simplify their processes, delivering a solution that benefits both sides.
