Employers who worry that the effectiveness of their cash-strapped employees will be sapped when the workers feel the stress from taking out a payday loan can now do something about it: Lend them the money themselves!
I read in BusinessWeek about several companies that offer a way to let employers make short-term loans to employees at one-fiftieth to one-tenth the cost of a payday loan. Typical payday loans can have an APR of 400%.
SymbiusFinancial.com, FlexWage.com, EmergeWorkplaceSolutions.com are among the companies that make this seamless for those employers who want to participate. Employers don’t lose money on these programs. The programs just protect employees from being financially destroyed by the scum in the payday lending industry.
If you’re an employer, take a look at these opportunities. It costs you nothing, but it could help keep your employees out of harm’s way.
Editor’s note: This segment originally aired Nov. 7, 2011