Payroll Advance Definition
Payroll advance is a type of short-term unsecured loan for employees, allowing employers to release payroll funds in advance. The idea behind the loan is to cover an unexpected expense, which cannot be delayed till payday.
Payroll advances can be offered to employees at the discretion of the employer. Any business offering payroll advance as an option to employees should have clear guidelines and a formal agreement that explains how the payroll advance will be repaid.
A Closer Look at Payroll Advance Agreements