Branch

About Company

Branch is a financial app that offers a viable alternative for working Americans encountering financial emergencies and seeking funds before their next paycheck. With the Branch app, users have the option to access a portion of their earned wages in advance through the EWA feature. This can be particularly advantageous when compared to traditional payday loan products. Rather than incurring interest or fees, users have the flexibility to express their gratitude for the service by providing a tip.

Key Features

1. Digital Wallet and Card. Branch provides a free digital wallet and card that gives workers flexible, instant access to their earnings. This allows employees to access their pay instantly after each shift, rather than waiting for the traditional bi-weekly or monthly pay cycle.

2. Earned Wage Access (EWA). A feature that allows employees to receive a portion of their earned wages ahead of the scheduled payday, providing financial flexibility.

3. Shift Management. Branch offers tools to distribute shift schedules, handle shift swapping, and manage employee availability. It allows employees to pick up additional shifts and helps employers fill scheduling gaps.

4. Communication. The platform facilitates direct communication between employers and employees through Branch Messenger, making it easier to share updates, changes in schedules, and other important information.

Pros and Cons

Pros

Cons

Reliability

Branch is a reliable platform trusted by many businesses and employees. The fact that Branch's banking services are provided by Evolve Bank & Trust, which is a member of the Federal Deposit Insurance Corporation (FDIC), adds an additional level of security and reliability to the platform. The FDIC insures deposits up to a certain limit, offering customers protection against the loss of their insured deposits.

Furthermore, Branch has received positive feedback for its user-friendly interface and the valuable services it offers to hourly workers, such as fast access to earned wages, easy shift scheduling, and the convenience of a digital wallet.

How to Apply for a Branch Loan?

1. Requesting Funds. Users can download the Branch app and request access to a portion of their earned wages, up to 50%. This request is handled through the app, not through the employer's payroll system, simplifying the process for employers.

2. Funding. The requested funds are loaded with direct deposits into the employee's Branch wallet. This happens without the employer needing to pre-fund or escrow any money, meaning there's no financial burden on the employer.

3. Spending. Once the funds are in their Branch digital wallet, employees can use them in various ways. They can make instant payments directly from the wallet, including via digital payment systems like Apple Pay and Google Pay. They can also use their Branch Debit Card, a physical card tied to their digital wallet.

4. Repayment. When payday arrives, the amount of the wage advance is automatically deducted from the employee's paycheck. This ensures that the advance is repaid in a timely manner.

This service offers employees financial flexibility by providing access to earned wages when they need them, rather than making them wait for the next payday. It's important to remember, however, that using EWA isn't the same as taking out a loan, and it should not be relied on as a regular method of borrowing money. It's intended to help manage unexpected expenses or short-term financial needs. As always, employees should use financial services responsibly.

Сonditions and Requirements

Conditions

Branch primarily provided Earned Wage Access rather than traditional loans. EWA is a paycheck advance on wages that an employee has already earned but has not yet received due to the timing of the payroll cycle.

Here are some of the key elements of EWA through Branch:

1. Access to Earned Wages. Employees can access up to 50% of their earned wages before their scheduled payday through the Branch app.

2. No Changes to Existing Payroll. The employer doesn't need to make changes to their existing payroll system or processes. The EWA service operates independently of these.

3. No Pre-funding or Escrow. The employer doesn't need to pre-fund or escrow any money. The requested funds are loaded directly into the employee's Branch digital wallet.

4. Repayment. Wage advance amounts are automatically deducted from the employee's paycheck on payday.

Requirements

The requirements for utilizing Branch's services, particularly Earned Wage Access (EWA), are outlined based on employer and employee eligibility criteria. It's important to note that while the specific requirements for using EWA may not be disclosed on the website, eligibility is determined once an employer is signed up for Branch. Here are the key considerations:

1. Employer Signup. Employers need to sign up for Branch to offer its financial services, including Earned Wage Access, to their employees. This involves the employer integrating Branch into their payroll system and providing access to the platform for their workforce.

2. Employee Activity. Employee eligibility for Branch services, including EWA, is contingent on their active status with the employer. Active employees are those who are currently engaged in employment with the participating company.

3. Work Hours. The eligibility criteria also take into account the number of hours worked by an employee during a given pay period. The specific threshold for hours worked may vary and is likely to be defined by the employer in collaboration with Branch.

4. Pay Period Considerations. Eligibility determinations are often made on a pay period basis. Employees must meet certain criteria, such as being actively employed and meeting minimum work hour requirements, during the specified pay period to qualify for Earned Wage Access.

Ways to Receive the Money

To receive a borrowed amount from Branch, employees download the Branch app, request funds through the app, and upon approval, the borrowed funds are loaded directly into their Branch digital wallet for immediate use.

Products

1. Branch Direct. This product is designed for employers to facilitate direct and seamless financial transactions, providing workers with a straightforward way to manage their money.

2. Branch White Label. The Branch White Label offering introduces a customizable solution for businesses, allowing them to integrate Branch's financial services seamlessly into their own platforms, enhancing the overall user experience.

3. 1099 Contractor Payments. Addressing the unique financial needs of independent contractors, this product streamlines the payment process for 1099 contractors, ensuring timely and efficient compensation.

4. Cashless Tips & Mileage. Branch recognizes the changing dynamics of modern transactions. The Cashless Tips & Mileage feature enables employers to send tips and mileage to workers in a digital, cashless manner after each swift.

5. Wage Access. At the core of Branch's offerings is the Earned Wage Access feature, allowing users to access a portion of their earned wages before the scheduled payday. This empowers individuals to address financial needs promptly without resorting to traditional payday loans.

6. Financial Wellness. Branch goes beyond transactional services by promoting Financial Wellness. This product provides users with tools and resources to enhance their overall financial health, offering guidance on budgeting, saving, and making informed financial decisions.

7. Wages & Direct Deposit. The Wages & Direct Deposit feature ensures a secure and timely transfer of earnings, providing users with the convenience of managing their finances directly through the Branch card.

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How to Repay a Branch Loan?

Repaying the loan with Branch is a streamlined process. When payday arrives, the amount of the wage advance is automatically deducted from the employee's paycheck. This automatic deduction mechanism ensures that the advance is repaid in a timely manner without the need for manual intervention, providing a convenient and hassle-free repayment experience for users.

Reasons for Getting Rejected for a Branch Loan

1. Ineligibility Criteria. If an employee does not meet the specific eligibility criteria established by their employer or Branch, they may be rejected for a loan.

2. Insufficient Work Hours. Some programs may require a minimum number of work hours during a pay period. If an employee falls below this threshold, they might not qualify for certain financial services.

3. Employment Status. If an individual's employment status is not considered active during the relevant pay period, they may be ineligible for certain services.

4. Employer-Specific Policies. Rejection could result from not aligning with the specific policies or requirements set by the employer who has partnered with Branch.

Loans like Branch

OnDeck

OnDeck stands out as an excellent choice for short-term business loans, offering the flexibility of borrowing substantial amounts, even for businesses with a minimum credit score. What makes OnDeck particularly attractive is its ability to provide funds swiftly, with same-day approval and disbursement for qualifying applicants. Moreover, OnDeck emphasizes the opportunity to build and strengthen business credit by consistently making on-time payments. The loan terms range from 18 to 24 months, with loan amounts spanning from $5,000 to $250,000. While the starting interest rate is 35.40% for a portion of customers, the accessibility and speed of funding make OnDeck a notable player in the short-term business loan landscape.

Funding Circle

Funding Circle distinguishes itself in the realm of long-term business loans by offering competitive rates, extended repayment terms, and a lack of prepayment penalties. This lending option caters to businesses seeking larger loan amounts, ranging from $25,000 to $500,000, with a reasonable starting interest rate of 11.29%. Beyond financial support, Funding Circle prioritizes efficiency, enabling businesses to access funds in as little as two business days. Notably, Funding Circle also showcases its commitment to diversity by providing funding options specifically tailored for women-owned businesses and minority entrepreneurs. The loan terms extend from 6 to 84 months, making Funding Circle a favorable choice for businesses with a more extended financial horizon.

Credibly

Credibly positions itself as a reliable source for working capital loans, particularly for businesses requiring quick funding to address immediate operational needs like payroll or inventory expenses. Notably, Credibly's working capital loans boast a rapid approval process, often providing funds in less than 24 hours. The lender exhibits flexibility by considering applicants with a minimum credit score of 500 and a willingness to look beyond a less-than-perfect credit history, provided there is a healthy annual revenue. Beyond working capital loans, Credibly collaborates with a network of lenders to offer a diverse range of financing options, including merchant cash advances, business lines of credit, equipment financing, SBA loans, and invoice factoring.

Fundbox

For startups in need of swift financing, Fundbox presents an appealing option with its business line of credit, offering up to $150,000. What sets Fundbox apart is its relatively lenient eligibility criteria, allowing new companies to qualify after just six months of operation and a minimum annual revenue of $100,000. The business line of credit provides the flexibility to withdraw funds as needed, and businesses only pay interest on the amount utilized. Additionally, Fundbox offers perks such as up to 20% off fees through its Fundbox Plus upgrade. With competitive starting interest rates ranging from 4.66% for 3-month terms to 8.99% for 6-month terms, Fundbox addresses the financial needs of emerging businesses seeking quick and accessible startup loans.

Editorial opinion

Important

How to Choose a Lender

1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

3. Carefully review all the terms and conditions of your payday loan contract.

4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 50 business lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

Additional Resources

• Branch Account Review
• How to Apply for Branch Loan
• How to PayOff Branch Loan
• Branch Mobile Apps
• Branch Reviews

Sources

• Branch

• Branch Messenger, Inc. | Better Business Bureau® Profile