Life is unpredictable and sometimes you need financial help. However, with employers no longer offering to give salary advances, for many pay-day loans have become the only option. These lenders charge exorbitant interest rates and demand repayment within two weeks. This often leads to the accumulation of larger debt. Last year over 20 million Americans were forced to use this option, many multiple times. Frustrated by the lack of options, President Jonathan Harrison and the people at Emerge Workplace Solutions, Inc created a new alternative.
By partnering with employers and community banks, Emerge allows those who have been employed for over a year to borrow between $300-$1500 and pay it back over a period of 6-8 months. This paperless liquidity solution not only halts the cycle of debt but allows employees to build credit. On average, credit scores are increased by over 50 points! Additionally, users can access an online suite of financial education, webinars, and financial crisis counseling. The ultimate purpose is to decrease high interest debt and act as a pipeline to Emerge’s lending partners. Employees will gain access to loans and other credit products, while employers improve productivity by cutting the losses caused by financial worry.
Emerge is demonstrating that there is a scaleable, innovative and profitable alternative. This new credit product can replace high interest lending for those with stable jobs and change the system. A whole new set of individuals will gain access to credit. Harrison states, “Getting [B] certified was important to begin to define who we are as a business and who we are not.” Investors know that the mission is to be profitable while considering all stakeholders. Employers know Emerge is someone they can trust. This company is on the employees side and trying to have social impact.
A necessary change in lending is in sight. Emerge is launching phase one of their product rollout and will work with lending partners in the Southeast Gulf region and Northwest. From there, they will move into larger companies and scale out, adding customers and lending partners as they grow. It is their, and our, hope that soon they will help people around the country build credit, access better products and move into the mainstream market.
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Discussion: 1 Comment
In a banking world where all I have heard for past 2-3 years is what we can’t or no longer do, it is great to see something that is solution oriented instead of a bandaid.
Two Thumbs Up!