How wages on demand avoids overdraft

Learning how on-demand pay avoids overdraft can be the differential that your company lacked to free employees from overdraft. After all, the modality generates flexibility and autonomy so that the individuals themselves can take care of their financial planning – preventing, for example, that the bank account goes into the red because the salary advance is still far away.


In this post, we’ll talk about how on-demand pay avoids overdraft . And, if you still don’t know this big trend in the HR sector, we strongly recommend this reading!

Mainly because overdraft interest rates are among the highest in the country – in the same way that much of the country makes use of this type of easy, but expensive, loan .

And so, the salary on demand comes as an equally simplified solution, with a high power of autonomy and flexibility for people to create their financial plans.

Do you want to know more about it? So, read on, and find out with us how on-demand pay avoids overdraft!

What is and what is the risk of using overdraft?

The big problem with this type of loan is simply: overdraft interest . Added to this is the ease with which this credit is granted by banking institutions.

This is usually an automatic feature, used when your account goes red. In other words: a loan made easy and without prior analysis of the applicant’s profile.

As a result, banks protect themselves in the best possible way from possible defaults: with high interest rates. And, what could be a simple debit in the account, becomes an increasing debt, since you have replaced (probably) a debt with an even bigger one.


How does the overdraft fee work?

Fees vary by financial institution, but are scary. On average, they can go from 20 to 500% per year !

With that, we are already paving the way to explain how the salary on demand avoids overdraft. After all, the trend in human resources aims to relieve employees who are in debt or in the process of becoming indebted, by means of a practical solution that benefits everyone – including the company!

What is on-demand pay?

Waiting anxiously for the salary advance can be an anguish with the days numbered, you know?

All because the on-demand salary gives up the dependency that people created with the pay days in the company. With the use of this important corporate benefit, your employees can request the desired amount – according to the days already worked – and receive it within 24 hours.


How does on-demand pay avoid overdraft?

Let’s say, for example, that your employee had to make an emergency purchase on the third business day of the month – a time that people normally crave for a salary advance.

Upon checking the bank account, however, he found that the necessary acquisition would put his balance in the negative. Consequently, he would make use of the overdraft .

It would, of course, be a few days consuming the rates on that loan, but what if the same situation still occurred with five, ten or 13 days to go before the next payment?

Thus, any financial planning goes to space, since these rates, day after day, drain a sado that could be better used for other things.

And so you already understand how on-demand pay avoids overdraft.

Upon learning of an immediate need, the employee can request the balance he has available without the overdraft being triggered . The best part is that your professional, who already knows your account routine, throughout the month, will know the best days to request the benefit.

What are the benefits of salary on demand?

By offering this advantage and flexibility in payment to employees, the entire company can guarantee itself in positive aspects, such as:

  • reducing the financial stress of your staff, since they will have more control over their finances;
  • increased productivity and engagement, since financial stress directly impacts the performance of employees;
  • attraction and retention of talents due to a differential that not all companies are aware of, yet, of its importance;
  • reduction in the turnover rate on account of professionals who, subsequently, are not performing as expected.

Did you understand how the on-demand salary avoids overdraft and also improves the company’s results?

The solution appears as a good opportunity to generate competitive advantages. Especially, at a time when investment in technology has generated a balance in the competitiveness of the market.

How to offer such a solution in the company?

If you are interested in learning how on-demand pay avoids overdraft, but you don’t know where to start, it’s worth knowing how Xerpa is taking big steps in that direction!

All because earlier this year, we launched Xerpay – our on-demand pay solution. Do you want to know more about this before proceeding with this reading? In this text, we talk about Xerpay !

Through it, your company has a very low maintenance to apply it in your routine. Just check which employees are interested in purchasing the salary on demand and then share it with Xerpa.

Its cash flow and payment remains the same, since the entire operation is financed by Xerpa itself – which charges a very low cost of up to R $ 9 per transaction.

Your HR team, therefore, only takes care of the initial assessment of those who are interested in it, and the rest of the application is maintained directly by the app provided by Xerpa.

Here’s a step-by-step guide for you to understand, in practice, how on-demand pay avoids overdraft with Xerpay :

  • your HR agrees to use Xerpay within the company;
  • employees who show interest in using the salary on demand are given access to the app;
  • bank details are shared so that the employee, when requesting the withdrawal, has the funds accounted for;
  • the amount is charged to a working capital reserve at Xerpa;
  • your financier makes the payment, normally, within the stipulated deadlines;
  • the amount debited from each salary is passed on to Xerpa.

Did you understand? Simple, practical and without the big debts accumulated on the shoulders of your employees. A financial stress-free environment works best, no doubt!

Who is Xerpa?

In an increasingly digital world, everything that involves bureaucracy is a matter of the past . To bring dynamism, agility, productivity and add value to your company, know that you can count on Xerpa , whose name comes from the “Himalayan Sherpas” , who support climbers on their travels. Therefore, since 2015, the company has brought its audience closer to technological solutions capable of qualifying HR management in the market. And in the coming years, Xerpa intends to help millions of Brazilians who enter the overdraft due to financial unforeseen circumstances. Therefore, with the benefit of wages on demand, it is possible to receive wages whenever and wherever you want. The Xerpay that is exactly what it does, it avoids abusive overdraft interest, and contributes to the financial well-being of employees.


Come to know more about salary on demand , and how it can help with talent retention, in addition to reducing financial stress.


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