Frequently Asked Questions

Why do employees use these services?  The reasons are as numerous as the requests that employees receive.  The most typical reason is an emergency that is unplanned.  Utilities need to be paid or will be turned off, car breaks down, need to buy groceries, need some extra cash to make it to the end of the month.  Other reasons might include but are not limited to taking a vacation, need to make a purchase but just don’t have the funds and don’t want to wait a couple of weeks.

Common Misconceptions:

“My employees are well compensated; they would never need to get an advance on their check.”  Your employees may be well compensated but that does not mean that they can’t use a payday advance from time to time. Using this service has nothing to do with how well they are compensated.

“My employees would come to me for an advance if they ever needed one.” Many times employees are embarrassed or afraid to approach a business owner or their direct manager to request a payday advance. Money can be very personal and approaching their boss may be an option of last resort.

“I don’t get any requests so I guess no one in my company would use this type of service.”  This is one of the most common of the payroll advance misconceptions. As mentioned before, employees don’t always feel comfortable going to their direct manager much less the business owner/CEO to ask for $300 to $500. It is easier and more personal to go to online and or request an advance at a brick and mortar store. This leads to wasted time and the possibility that your employee may pay 50-100% more to acquire this form of credit just so they can avoid the employer.

“I have heard of these companies, they sound like loan sharks.”  Payday lending is a legal and regulated service. Advances are given out based on state law in which the distribution and collections of funds is overseen by the originating state. Rates are higher than a loan you might get at a bank but for a short term instrument, these rates are extremely competitive with alternative bank financing such as bouncing a check, overdraft protection or bounced check protection. For instance, bouncing a $100 check with the bank costs the person who bounced the check about $30 at a typical bank.  That translates to a 10,905% APR. That sounds ridiculous doesn't it? Fees depending on the plan provided can be from $5.00 to $20.00 per $100. The terms are 14 to 15 days depending on the pay cycle the employees belongs to. This APR translates to 120 – 480 % APR. With the help of the employers, the fees charged to employees can push the actual fee very low affording the employee an advance in the lower range.

“I don’t want to allow my employee to get in a cycle of debt.”  Providing a cheaper, safer more efficient access to payroll advances is not allowing your employees to fall into a debt trap. Only the employee can allow themselves to do that. AeroAdvance.BIZ takes precautions based on states rules to limit the time the employee should have the advance.