FinFit Overview and Information
Access to free financial education tools
- Personalized Financial Assessment
- 22 Interactive Educational Modules
- Financial Dashboard
- 20 Budgeting Calculators
Access to short-term funds
- Loans range from $500 – $10,000
- Employee must be employed for at least 6 months and make $10 / hour to qualify
- Loans are for a fixed 5-month term
- Loans are paid back in equal installments through payroll. If the client runs payroll semi-monthly, loan would be paid back equally over 10 pay periods.
- Loans carry a 9% interest rate and a 9% origination fee. In a practical sense, if an employee borrows $1,000, fees and interest equate to $122. If that employee is paid semi-monthly, $112.20 is paid back each pay period. In essence, the true fees and interest amount to roughly 12%. There is no penalty for paying the loan off early so the actual interest paid may vary depending on when the loan is satisfied.
- FICO score is not used in underwriting so those who may not have access to affordable credit and historically have turned to high cost alternatives now have a better solution.
- Free to the client
- If an employee were to terminate or separate and there is an open balance on the loan, the client is not responsible for the funds. FinFit will work directly with the former employee to establish a repayment plan whereby the employee can send payments directly to FInFit.
No administrative burden
- FinFit integrates with payroll so that the client does not have to setup loan repayments or manage declining balances on loans.
Protects the client
- Preserves 401(k) plans by reducing the need for their employees to take out loans against their retirement funds.
- Discrimination Lawsuits – if a client is lending money to their employees and is not practicing a uniform policy (gives Joe $200 but gives Sally $1,000 because they like her better), the client could face HR violations and lawsuits.
- IRS Audits – if the client does lend money to their employees, that loan may be subject to income tax. If the client is not withholding income tax they could be penalized during an IRS audit.
- Lost money – if the client lends money to an employee and does not get a signed repayment agreement, the employee may not be required to pay back the open balance if they leave or are terminated.
You automatically have these benefits through the HR Ledger system as no cost to you.
This is already included in your payroll agreement with HR Ledger and is no additional cost. Please call Malcolm or Scott today at 800-451-1136.