To relieve workers and financiers in companies, a startup has just launched a solution to manage salary advances.
(Cio Mag) – Faced with an unfavorable economic situation, workers in the formal sector very often resort to salary advances to manage certain emergencies, while waiting for the end of the month. A system that has almost become a tradition in several companies. Until now managed internally, this offer could soon change hands, or even be relocated.
This is at least the wish of a startup which has just launched FINTRA (End of the month Tranquil). According to Oumar Diallo, one of the promoters, this salary advance solution allows the company to offer its employees the possibility of receiving up to 20% of their salary in advance.
” Fintra makes it possible to automatically manage salary advance requests and provide employees with a financial management system, while maintaining control and without impacting the company’s cash flow. The management of prepayment requests is automatic “, he explains. For Mr. Diallo, this offer is open to both public and private companies.
A rate of 6% of the amount of the advance
While banks take up to 12% on overdrafts, in companies, the amounts remain limited. For Fintra, it is a rate of 6% on the amount of the advance which serves as remuneration, explains Oumar Diallo. However, according to Mamadou Sall, former head of human resources for a public press group in Senegal, the salary advance is a process payment for work that has not yet been done. But, he hastens to add, it is not a down payment that comes to him for work already done.
” Advance on salary consists for the worker to ask his employer to lend him an amount on his future salary. The employer is not obliged to accept since the work has not yet been done. The amount is not fixed, but it must be taken into account the level of the worker’s commitment (debt capacity) vis-à-vis the banks in particular “, he explained.
According to him, the offer may be of interest to many companies given the headache that the salary advance represents for financiers as the end of the month approaches. Today, to comply with the regulations, the start-up has been enlisted by a bank.