Payroll advance

request payroll advance

Normally, a payroll advance is an extra service offered by banks and other entities to help you solve last minute economic unforeseen events . However, we invite you to find out in which situations it is convenient to ask for it, who offers it and above all the advantages of this type of financing.

In this article we will clarify all the most frequent doubts about a payroll advance. Know all the key aspects about this type of financing so that you can evaluate if it is the best option for your current situation.

Last update: 11 November 2020
Ranking created based on the most frequently granted loans
7 - 30 days
term
$ 50 - $ 300
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
2 - 3 months
term
$ 50 - $ 750
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
91 - 120 days
term
$ 100 - $ 1,000
maximum first loan
Yes
? Varies by lender
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
61 - 120 days
term
$ 50 - $ 300
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
5 - 30 days
term
$ 50 - $ 1,000
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
5 - 62 days
term
$ 100 - $ 400
maximum first loan
Yes
? Up to € 300
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
10 - 34 days
term
$ 300 - $ 500
maximum first loan
No
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
5 - 30 days
term
$ 100 - $ 1,000
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
5 - 31 days
term
$ 50 - $ 500
maximum first loan
Yes
free first loan
Yes
? Your debt must not be more than 1500 $
Supports Credit Checker
" APPLY FOR "
2 - 3 months
term
$ 50 - $ 750
maximum first loan
Yes
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
5 - 30 days
term
$ 50 - $ 300
maximum first loan
Yes
free first loan
No
Supports Credit Checker
" APPLY FOR "
7 - 30 days
term
$ 50 - $ 300
maximum first loan
No
free first loan
Yes
Supports Credit Checker
" APPLY FOR "
61 - 120 days
term
$ 100 - $ 400
maximum first loan
No
free first loan
Yes
Supports Credit Checker
" APPLY FOR "

What is a payroll advance?

A payroll advance consists of receiving from one part, up to 3 times your salary before the collection date, which is usually the first or last day of each month. This type of financing works like a loan offered by the bank where they normally deposit your salary or benefit. However, you must bear in mind that you can access several loans without changing banks .

Normally these are small amounts and it is considered a short-term loan because the repayment terms range from 30 days to 6 months. In addition, the limit amount they would lend you can be up to 3 times the value of your payroll, depending on the entity.

How to request a payroll advance?

To request a payroll advance, you must have a payroll account . That is, a bank account in which you receive your salary every month. You can do this process through 3 options:

Request it from your company

You may be able to go in the first instance to the company where you work to request this advance. Normally, the conditions will be adjusted to what is established by the law and the collective agreement of workers in your sector.

Go to your bank

You can also negotiate with the bank in which they deposit your salary every month or contract a payroll account that already includes this advantage . However, this does not mean that when you open this type of bank account, your advance request will be automatically accepted.

This operation usually includes a lot of requirements and paperwork. In addition, they will evaluate your financial profile and require a period of seniority as a bank customer or a specific employment contract.

Request it from a lender

One of the easiest and fastest options that are also 100% online, is to request a payroll advance from private lenders . You just have to select the amount you need and the term in which you can return it. After filling out a form with your data to create your financial profile, you send the request and receive a response in just minutes.

If your application is approved, you will receive the money immediately . In addition, the amounts are low and in many cases the first loan is free , so they do not represent a high financial risk.

What banks grant a payroll advance?

online money advance

One of the options to receive this type of financing from a bank is to open a payroll account at any of the following banks:

Bank Maximum amount in us dollars
BBVA 3,000
ING 3,000
Santander 9,000
Bankinter Net monthly amount of your payroll
Caixabank 9,000
Liberbank 6,000
Sabadell 5,000
Openbank 24,000
popular Bank 30,000

If your bank does not include the option to offer you a payroll advance, you can still request it through private lenders that offer interest-free loans . The advantage is that you can carry out all the procedures online and you will receive the money almost immediately. Among the most important options we can mention:

Lender Maximum amount on your first loan
Vivus 300
Moneyman 300
Money 300
Constant 300
Wandoo 300
Ccloan 300
Credy 750
Hello money 1000
PartyCredit 1000
CreditZen 1000

Requirements to request a payroll advance

To request a payroll advance from a lender, the requirements are simpler than if you request it from the bank. These are the most common:

  • Being over 18 years.
  • Reside in the United States.
  • Have a bank account in the country.
  • Have demonstrable monthly income domiciled in a bank.
  • Have active mobile and email.

When to ask for a salary advance?

payroll advances online

Salary advances are not intended to be a recurring financing method. This means that they are only used in emergencies and to deal with unforeseen debts related to health, repairs, payment of services, registration, rent, etc.

The most important thing to know if it is convenient to access this type of financing is to have a fixed monthly income and a stable employment contract. If your contract is for 3 months, the most sensible thing would be to request a payroll advance to be repaid in 30 days and for an amount that does not exceed your monthly net salary.

If you think that your financial situation requires medium-term financing, it is best to request a loan to be repaid in 90 days , and if it is a long-term project, installment loans or lines of credit would be your best option.

Advantages of a payroll advance

Why request an advance

Among the main advantages of accessing this type of financing, we have:

Low interest and no commissions

The best thing about a payroll advance is that this financing does not involve cancellation fees or partial amortization. It is a type of cheap personal loans since it has very low interest percentages in relation to other types of financing with similar characteristics.

In fact, most entities offer them with a TIN (Nominal Interest Rate) of 0%, which means that you only return the amount they loaned you , as long as you do not delay with the payment of any fee.

Immediate Liquidity

The best thing about this type of financing is that they are granted almost immediately, since for many entities, you can do all the procedures online and without paperwork. After about 15 minutes you can receive the money in your bank account.

Secure Loan

That it is an advance on your salary, gives more peace of mind because you know that this money is guaranteed in some way. As long as you have a stable employment contract, the risks are minimal as long as you are aware of how much you can request so that it does not severely affect your monthly finances.

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