The market is getting opened after the pandemic for finance companies providing loans. The provision may reach more than 25% since the first of July, regardless the period of a loan. However, there is a safe alternative for those who might have troubles with financial liquidity.
Money.pl reports on the termination of a law that for the time of the pandemic lowered the maximum non interest costs of consumer credits (provisions and various extra costs).
The new higher limit that came into force with the first of July is in fact the old limit – it’s a return to the previous rules, since it’s going to be on the exactly same level as before the pandemic. It’s calculated with the following formula: (loan amount * 25%) + (loan amount * 30% * time limit in days / 365).
The change will not affect the maximum interest which still will be 7,2%. When the interest rates reach the level before the pandemic, it might increase to 10%.
What does it mean? If we take 3000PLN loan for 23 months, the non interest cost (so-called provision) might reach up to 2400PLN. During the former pandemic limits it was only 780PLN.
During the pandemic when the limits were changed, some people couldn’t benefit from loan services provided by legitimate financial companies. The only possibility left for them was to find loans on black market, which operates without and regulations and safety mechanisms. Now these clients may once again use the services of a loan industry, yet it may be extremely expensive – without a doubt loan companies will try to make back the financial loses after the pandemic. It’s clear that before the pandemic as well as now, there was no true alternative.
Hopefully the situation has changed. The alternative is Flexee, the first app in Poland providing always-available access to salary. Its creators want to change the rules of a payday. The app allows crediting current expanses from the funds earned before the official salary. It’s a form of a benefit and the concept is simple – money is transferred instantly and returned automatically as a deduction from the official salary, or manually by the user. Remaining details are arranged between an employer and employee.
Solutions like Flexee may be a true alternative for black market as well as loan industry where non interest costs might be immorally high. It’s a safe option that may save a home budget. Many workers, especially low-ranking and mid-level employees need money before the end of a month. That’s the fact, we get surprised by things like family problems, accidents, but also occasional sales we don’t want to miss. In such cases, instead of asking friends for money or taking high interest fast loans, people can get the money from their salary earlier.
Flexee is an asset for an employer who decides to implement such benefit in the company. The employer gets loyal employees and makes sure that the staff can focus on duties instead of looking for extra sources of money – satisfied workers are in good mental and financial condition. The company can integrate with providers’ system but if for any reasons the company decides not to do so, the employer can chose a simplified solution and send to Flexee an Excel file. In case of B2B model and full integration employees get access to real-time payments, so they can pay out all the money earned from the last salary up to the present day.
Full transparency is crucial for Flexee, and for that reason there are no hidden costs. In fact, there is only one small fee for a payout, deducted in the moment of settlement. Fees are charged automatically and can be set on many different levels. Obviously, the amount of fee depends on many factors like company size, industry, location etc. Each offer is tailor made to suit client’s needs, the company or the employee.
Flexible salary becomes reality thanks to Flexee and the loan industry gains a true competitor willing to change the rules of the game. There is hope that with growing popularity of solutions like Flexee, unfair credit companies that prey on financial difficulties of people will disappear from the market. “Salary on demand” model tested in Western countries is slowly gaining recognition in Poland, with benefit for employers and employees.