The ability to get an advance on your salary or even a loan from the company you work for, is seen as a benefit for employees. It can certainly be a quicker, safer, and even cheaper way to get credit than with a loan from a credit provider. However, as with all debt decisions, make sure you consider the full picture before you apply for a loan from your employer.Before we look at the pros and cons of workplace credit, let’s get clear on the difference between a salary advance and a workplace loan. A salary advance is exactly what it sounds like: it is a part of your salary that the company pays out to you before payday. The idea is that the advance will be deducted from your salary at the end of the month. In terms of the National Credit Act, the company must charge interest on the advance. A workplace loan is a loan you get from your employer that comes with a loan agreement that stipulates the interest rate and the repayment schedule. The loan instalments are deducted from your salary. Many companies prefer to give employees loans instead of salary advances, mainly because of the danger that a person could fall into a cycle of salary advances because the salary minus the advance amount is not enough to cover a household’s expenses.