On-Demand PTO Cash Advance Provides Financial Relief for Employees

Many employees struggle to make ends meet due to unexpected expenses or financial emergencies.

According to a study, 77% of employees live paycheck to paycheck, making it difficult to afford everyday expenses, let alone unexpected costs.

On-demand PTO cash advance can provide much-needed financial relief for employees in such situations.

On-demand PTO cash advance allows employees to access a portion of their accrued paid time off (PTO) as a cash advance, providing a financial lifeline during times of need.

This solution helps employees avoid late fees, overdraft charges, and other financial penalties associated with missed payments.

Sorbet is a U.S./Israeli fintech startup.

Sorbet has launched a platform that lets employees access the value of their unused paid time off (PTO) on demand.

The company buys out PTO liabilities from employees and refinances these liabilities for employers.

Sorbet receives an application, determines the amount of the employee’s unused PTO payouts, and transfers the money to a prepaid debit Visa card.

The interest rate on this card ranges from 9.99% to 18% APR.

Employees make interest-only payments to Sorbet during the advance term.

They should later repay the full amount either when leaving the company and receiving their PTO payout or after two years, whichever comes first.

Sorbet is now available in eight US states: Colorado, Florida, Illinois, Massachusetts, New York, New Jersey, Texas, and Virginia.

Sorbet's solution comes with some limitations, mainly related to its financial terms.

The interest rates for the prepaid debit Visa card can be steep, ranging from 9.99% to 18% APR.

Employees have to make interest-only payments during the advance term, which might not be ideal for those on a tight budget.

The full amount must be repaid either when leaving the company and receiving their PTO payout or after two years, whichever comes first.

This repayment term might be a concern for employees who are unsure about their job security or financial stability.

The solution is currently only available in eight US states: Colorado, Florida, Illinois, Massachusetts, New York, New Jersey, Texas, and Virginia.

Sorbet PTO Cash Advance is a solution that lets employees access the value of their unused paid time off (PTO) on demand.

The platform is now available in eight US states: Colorado, Florida, Illinois, Massachusetts, New York, New Jersey, Texas, and Virginia.

Sorbet buys out PTO liabilities from employees and refinances these liabilities for employers, providing a benefit for both parties.

Employees can access the cash value of PTO as they accrue it, rather than waiting until they leave the company.

The solution works by transferring the money to a prepaid debit Visa card, incurring interest at an APR between 9.99% and 18%.

Employees make interest-only payments to Sorbet during the advance term, and then repay the full amount when leaving the company and receiving their PTO payout, or after two years, whichever comes first.

This on-demand PTO cash advance solution offers an alternative to payday loans and earned wage access solutions, and is especially useful in times of economic uncertainty.

Forty-nine percent of individuals and households earning more than $100,000 annually are now living paycheck to paycheck, highlighting the need for financial wellness benefits like this solution.

The solution will be expanded to other states this year, and is a much-needed financial benefit for employees who want to access the cash value of their unused PTO.