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Workplace lending undergoes a transformation through Wagestream's introduction of budget-friendly loans.

Workplace finance and wellbeing innovator, Wagestream, unveils enhancements to its Workplace Loans offering. This update, bolstered by the £300 million debt funding secured from Citi in April, targets the problem of unreachable credit and underscores Wagestream's dedication to furnishing fair...

Workplace lending receives an affordable upgrade through Wagestream's innovative loan services
Workplace lending receives an affordable upgrade through Wagestream's innovative loan services

Workplace lending undergoes a transformation through Wagestream's introduction of budget-friendly loans.

Wagestream Secures £300 Million Financing to Expand Fair and Responsible Workplace Loans

Wagestream, a leading workplace finance and wellbeing company, has secured a substantial £300 million debt financing facility from Citi. This funding will enable Wagestream to expand its Workplace Loans product, addressing the issue of inaccessible credit for up to 30% of UK adults.

The Workplace Loans product, initially launched as an early access programme in April 2024, is now available to Wagestream's entire UK client base. This innovative loan solution is designed to offer a fair, affordable alternative to traditional lending models, particularly beneficial for low and middle-income earners with fluctuating paydays.

Wagestream's Co-Founder, Portman Wills, stated that the company is pioneering a new era of fair, responsible lending. The loans do not incur additional fees such as origination, early, or late payment fees, making them an attractive option for individuals with thin credit files and on low and/or variable incomes.

The loans are aligned with individual pay schedules, with repayments directly deducted from salary. This approach reduces the risk of missed payments and the potential negative impact on credit scores. A direct debit is set up as a secondary safeguard to ensure loan repayments are met.

The system eliminates administrative burden for employers, as payments are automatically reconciled within the payroll system. The product is engineered to help users avoid missing repayments and foster financial stability for millions.

Wagestream aims to lead the industry with superior features not commonly available through traditional financial institutions. The company's mission is to provide fair financial tools for the everyday worker. By offering flexible repayment schedules based on individual pay cycles, Wagestream's Workplace Loans product aims to promote financial stability for millions without negatively affecting credit scores.

With the enhanced product now available, Wagestream is poised to make a significant impact on the lives of millions of UK workers struggling to access mainstream credit services.

[1] Source: Wagestream Press Release, [Date]

This article is intended for informational purposes only and should not be construed as financial advice.

  1. The business expansion of Wagestream's Workplace Loans, facilitated by a £300 million debt financing from Citi, leverages technology to provide fair, responsible, and affordable loans for low and middle-income earners, addressing the financial needs of up to 30% of UK adults.
  2. By offering its innovative Workplace Loans, which align with individual pay schedules and do not incur additional fees, Wagestream, a pioneer in the finance sector, aims to lead the industry and provide superior financial tools for the everyday worker, promoting financial stability without negatively impacting credit scores.

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