New Financial Wellness Benefits Provide Accessible Credit Solutions for Employees
SimpleFi's Zero-Interest Lending Programs Help Employees Overcome Personal Debt, Decreasing Financial Stress and Encouraging Healthy Workplaces
Apr 21, 2015, 09:07 ET
PALO ALTO, Calif., April 21, 2015 /PRNewswire/ -- SimpleFi, a leader in providing responsible financial opportunity to everyone, today launched its new accessible and affordable credit and lending solution for employers. Designed to transform the credit industry and knock down traditional barriers of obtaining mainstream financing, SimpleFi offers a more sustainable, accessible model for the workforce that addresses the entire credit spectrum - not just the high-end, or so called "best borrowers." With SimpleFi, employers now have the ability to offer immediate relief with highly accessible credit at affordable rates (zero to nine percent APR with no hidden fees), combined with one-on-one financial coaching and advocacy, through the human resource benefits program.
More than 100 million Americans have difficulty managing their household cash flow[1]. Yet obtaining affordable credit and financing, particularly for emergency situations, is a challenge for many across the country. Banks don't lend to those with low credit scores and payday lenders take advantage of those who are in desperate situations. As such, increasing debt continues to burden U.S. households - 72 percent of Americans report feeling stressed about money[2], and only 48 percent of folks across the country can come up with $400 for an emergency[3].
"When an employee is feeling stressed, particularly from financial issues, it is definitely evident in their performance on the job," said Marcy Jacobs, Director of Human Resources at Alameda County Community Food Bank. "By offering SimpleFi's solution to our employees, we know that we're providing the chance for employees to alleviate personal debt - and the stress related to that debt. In turn, we get higher productivity and a happier workplace. Its a win-win for both sides."
SimpleFi is currently being used by more than 20 customers, including Stanford Federal Credit Union, San Diego Zoo, LYFE Kitchen, Sutter Health Lakeside, Saint Vincent de Paul, Alameda County Community Food Bank, and Technology Credit Union.
"Debt can be a very daunting and debilitating factor in someone's life, as I've seen first-hand, and without access to affordable credit there is no relief," said Adam Potter, Co-Founder and President of SimpleFi. "At SimpleFi, we are dedicated to changing this, to alleviating debt, as it is the first step in achieving financially healthy households and workplaces, and building financial competency for everyone."
The SimpleFi solution - designed as both preventative and prescriptive - is subsidized by employers who benefit from a financially healthier and productive workforce. With accessible low-cost credit, SimpleFi helps to relieve stress during financial emergencies by preventing the need for 401(k)/403(b) borrowing or expensive payday loans. Low-cost refinancing loans also allow users to pay down debts faster than traditional solutions, which often waste time and money on paying interest rather than principal. In addition, one-on-one credit coaching helps educate users on how to get out of debt and build credit. Furthermore, SimpleFi's financing is authorized for emergencies or to pay off existing debt, not to make new purchases.
With SimpleFi offered as an employee benefit, human resource (HR) departments save time and increase efficiencies by not having to manage "retirement leakage." SimpleFi decreases the need for HR to administer 401(k)/403(b) IRS filings for loans, and removes the burden of providing employees financial advice - which most, if not all, feel unequipped to provide. In addition, SimpleFi offers a powerful counterbalance to rising healthcare costs which may not be covered by insurance. By offering a constructive solution to a critical problem many employees face, companies experience greater loyalty and retention.
For additional information on SimpleFi, visit www.simplefinow.com.
ABOUT SIMPLEFI:
SimpleFi's mission is to financially empower everyone through highly accessible and affordable credit tailored to personal needs, and combined with one-on-one financial coaching and advocacy. The company and its founders believe that access to financial opportunity at fair rates is crucial to a healthy workplace and national economy. Whether it is a student who is burdened with education loans, an employee who is faced with unexpected expenses, or a member of the military trying to improve credit, SimpleFi is committed to the economic good of alleviating personal debt. Based in Palo Alto, California, SimpleFi is privately held and backed by social impact investors and strategic institutional partners. For more information visit www.simplefinow.com.
[1] The Brookings Institution, "The Wealthy-Hand-to-Mouth."
[2] American Psychological Association, Stress in America™: Paying With Our Health survey
[3] Federal Reserve, "Report on the Economic Well-Being of U.S. Households in 2013"
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SOURCE SimpleFi