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Employee credit benefit at no cost to the employer

A staff credit programme that costs you nothing and carries no exposure

You are probably already in the employee lending business without having decided to be.

Salary advances get approved informally. Loans get made to long-serving staff and quietly forgotten. Finance carries receivables nobody reconciles, HR fields requests it has no policy for, and the whole thing sits on your working capital rather than someone else's. Meanwhile the employees you did not help are borrowing from informal lenders at rates that show up later as absenteeism, attrition and wage-advance pressure.

7Later replaces that with a structured programme funded by a licensed financial institution. You lend nothing. You carry no credit risk. You need no licence. Nothing appears on your balance sheet.

What changes on your side

An alternative to salary advances and informal staff loans, moved onto a licensed lender's balance sheet.

Who funds it

Today
Your working capital
With 7Later
A licensed lender

Who decides

Today
Line managers, case by case
With 7Later
The lender's policy, uniformly

Where the receivable sits

Today
Your balance sheet
With 7Later
The lender's balance sheet

Who chases repayment

Today
Nobody, or finance
With 7Later
Nobody — it is intercepted before net pay

Administrative load

Today
Ad hoc, unbudgeted
With 7Later
One monthly file, or none

What staff get

Today
Whatever was negotiated
With 7Later
A defined limit, on defined terms

Choose your level of involvement

Employers differ in what they are willing to sign, and we do not require the same thing from all of them. Three configurations exist; you pick the one your legal and finance teams can approve.

  • Level 1 · most common start

    Nothing at all

    Your employees open salary accounts with the partner lender and receive their pay there. The lender extends credit against the observed salary inflow and collects it at the account. You are not a party, you sign nothing, and your only involvement — if you choose to have any — is allowing the lender to present the programme to staff.

    Friction

    This is the lowest-friction option and the one most large employers start with.

  • Level 2

    A payroll deduction mandate

    You authorise and execute a deduction from net pay on the monthly file you already produce, and remit it to the lender. You guarantee nothing and take no credit exposure.

    Approval

    This is an operational decision, not a balance-sheet one.

  • Level 3

    A guarantee

    You stand behind your employees' obligations. In exchange, your staff get larger limits at a lower cost, because the lender's risk drops sharply.

    Approval

    This requires board or legal approval and suits employers with a formal staff welfare mandate.

You can move between levels. Employers commonly begin at the first and move to the second once the programme has run for a few cycles without incident.

What each configuration means for the lender

Employee benefit, no cash outlay

What it costs you

Nothing.

There is no fee to the employer in any configuration. Financing comes from the lender, and the lender's revenue comes from the credit product and its merchant network.

The only real cost

The only real cost is payroll team time, and only in the deduction configuration: one reconciliation file per pay cycle, produced from data you already hold. In the salary domiciliation configuration there is no cost and no task at all — you pay salaries to the accounts employees nominate, exactly as you do now.

What your people get

A defined limit sized to net pay, usable at merchants, online, on fuel, groceries and utility bills. Short terms, typically one to four instalments. Enrolment through WhatsApp or a web page in a few minutes, with no app to install — which matters more than it sounds, because app installation is where most workforce financial programmes lose the majority of their intended users.

Credit is issued as spending capacity within a defined merchant and utility network rather than as cash, which keeps the benefit anchored in essential consumption.

For HR and payroll

What we need from your payroll team

Deduction configuration only

Integration with common payroll platforms is available. Where a direct integration does not exist, a file exchange works and is what most employers use.

  1. Confirmation of pay cycle, pay date and payment method
  2. A monthly file of authorised deductions in a format we will agree, typically a direct export from your existing payroll system
  3. Defined joiner and leaver notifications, so limits open and close on time
  4. A named contact who can answer a question within a business day

Rollout

  1. Week 1

    Agreement

    Agreement with the lender, scope of participation, communication plan.

  2. Weeks 1–2

    Data exchange

    Payroll or account data exchange agreed and tested with a pilot group.

  3. Week 2

    Enrolment opens

    Staff enrolment opens. Employees register through WhatsApp or a web page in a few minutes.

  4. Weeks 3–6

    First full cycle

    Issuance, spending, collection, reconciliation.

  5. From week 6

    Full workforce

    Open to the full workforce.

No system is installed on your premises. No software is procured. Nothing is capitalised.

Employer enquiry

Arrange a conversation

Tell us about your workforce and payroll. We will match you with the right configuration and lending partner.

If you have a banking relationship already, the fastest route is usually to introduce us to that bank. You become the first employer of a programme your own bank runs.

Frequently asked questions

Does the employer lend the money?

No. Financing comes entirely from a licensed financial institution. The employer contributes no capital in any configuration, and no receivable appears on the employer's balance sheet.

Does the employer carry credit risk?

Only if it chooses to. Of the three configurations, one uses an employer guarantee and two do not. In the payroll deduction configuration the employer executes a deduction but takes no exposure, and in the salary domiciliation configuration the employer is not a party to the arrangement at all.

Does the employer pay anything?

No. There is no fee to the employer in any configuration. The lender's revenue comes from the credit product and its merchant network. The only real cost to an employer is payroll team time, and only in the deduction configuration — one reconciliation file per pay cycle, produced from data the company already holds.

Do we need a licence as an employer to offer this?

No. Credit is issued by a licensed lender to the employee directly. The employer is either a payroll administrator, a guarantor, or nothing at all, depending on the configuration — none of which constitutes lending.

How much work is this for our payroll team?

In the deduction configuration, one file per pay cycle drawn from data you already hold, plus joiner and leaver notifications. In the salary domiciliation configuration, none — the employer simply pays salaries to the accounts employees nominate, as it already does.

We already run a staff loan scheme. Why change?

Most internal schemes are funded from working capital, approved case by case, and reconciled irregularly, which puts a growing receivable on the employer's balance sheet and an unbudgeted administrative load on finance and HR. Moving the same benefit onto a licensed lender's balance sheet removes the capital, the exposure and the discretion, and replaces them with uniform terms applied by policy.

All questions on salary-secured lending