Many people had a situation when they had to borrow money before the paycheck. However, if there was no one to borrow, then MFO announcements attracted. True, microfinance organizations issue payday loans at a huge percentage, sometimes at 300% per annum. At the same time, few people know that payday loans can be legally taken from an employer. Still, when you are in a bad financial situation, it is quite useful to use the services of online lenders or cash advance options at DirectLoanTransfer. Arrange your payday loan.
Arrange Payday Loans Without Interest
Few people know that there is a completely legal opportunity to get an interest-free loan before payday from your employer. To do this, you need to make a request to the CEO of the company and explain what the money is needed for and what time frame. If the employer agrees to provide you with payday loans, an agreement is drawn up. This suggests an analog of a loan agreement with a bank. The difference is that money is given to you at 0%. There will be no overpayment under the agreement. This is the same as borrowing from relatives or friends on receipt but makes it officially.
Payday Loans From an Employer
The agreement clearly states the loan amount, the amount of payments on it, and the repayment period; as well as the details of the employer’s account to which you will make transfers from the payday loan. After the conclusion of the agreement, funds are issued at the cash desk in cash or transferred to the card. This nuance is discussed in advance. Once you get a loan, you can use it right away. That is, withdraw the entire amount from the card and spend on what is needed. In the end, the employer will not track the process of spending money.
However, a payday loan from an employer is not available to all employees. The employee must be in good standing, show decent results and the CEO must have no complaints against an employee. To get an interest-free loan, you must, first of all, have a good reputation. Furthermore, the employee must have some experience in the organization so that the employer can predict the repayment of the loan. Newcomers to the company are also likely to be denied a payday loan because the CEO doesn’t know what to expect from them.
In some cases, the possibility of obtaining an interest-free loan is provided by a compensation package for valuable employees. Knowing all the tricks about lending from the employer, you can take out payday loans quite often. At the same time, you will not lose stability in your own budget. Such facts are confirmed by financial analysts and add that sometimes payday loans also act as compensation for low wages or lack of indexation.
Benefits of Payday Loan
Payday loans have an obvious plus. It allows you to get money here and now, use it and not overpay interest. Funds are issued promptly. Thus, you will have to wait one to three days from the moment of the request until the amount is issued. You can repay payday loans in a lump sum or in installments. Either way, this must be stipulated in the agreement. Also, loan payments can be withheld from the salary which is also convenient.
A payday loan is an alternative to a bank loan and from a microfinance organization. But it must be borne in mind that the amount of debt on payday loans is taxed. According to the Tax Code, a loan at 0% is considered a material benefit.
Payday Loans Pitfalls
Payday loans have other pitfalls as well. For example, the contract may contain severe penalties for loan delays. If you are a frequent borrower and are dealing with an employer, your boss may include a clause in the agreement that the employee cannot quit until the loan is repaid.
Sometimes an employee is offered a more interesting and highly paid job. He cannot leave because such a condition was contained in the interest-free loan agreement. It is difficult to admit whether such a deal is profitable.
Another unpleasant nuance is that the CEO can change account details several times transferring money on a loan. You pay monthly according to one parameter, the next according to others. This is inconvenient from the repaying point of view. You cannot make such a payment on a regular basis through the Internet bank.
Sometimes it is more profitable to use a credit card than taking out payday loans. During the grace period, interest is not charged on it. The bank does not impose any restrictions on the client in its turn.
Taking a loan and staying on top makes sense if you need to make a purchase that exceeds the credit card limit. However, if a payday loan is still not enough, you could also look into car title loans. Otherwise, you need to fully repay the loan.
