Do advances exist?

July 29, 2009 3:49 PM

Is it possible to get an advance in salary (that is, an early paycheck) when just starting a job?

I have been unemployed since I graduated from college this spring, although I started looking and applying for jobs much earlier. After a string of setbacks, I've interviewed at a couple of jobs, and I feel really good about them to the point where I truly feel that I could be on the verge of getting an offer. Although nothing has set in stone yet, this has given rise to a new problem.

Right now, I'm in dire straits financially. Were I to be hired, I currently have just enough money to get me to and from work for the first week, if that. I'm trying to change that by selling my old things, but I'm not sure if that will make a big enough dent. I would ask my parents to borrow from them if I needed too, but they have their own troubles.

So what I was wondering was this: if I get a job and it turns out my paycheck isn't weekly, or if it turns out that I won't be getting money for a while, would it be possible for me to receive part of my salary before the first check--say, after the first week, and that amount can be deducted from the check I'd get later? For the record: I'm not expecting money before I start, and these are normal, salary-based positions I've been applying for, as opposed to commission-based ones. Will companies do this? When should I ask?

I know I haven't gotten an offer yet, and I may not get one for these jobs, but it's such a pressing issue that I felt I might as well ask for future reference. Thanks!

posted by anonymous to work & money (22 answers total)

No, do NOT ask an employer for a loan against your first paycheck, as that what this amounts to. This is what friends and family are for.

Not a great way to start a work relationship.
posted by readery at 3:58 PM on July 29, 2009 [11 favorites]

I think the right time to ask would be when you were talking to the HR folks on your first day. Explain your situation and how much you need to tide you over. If they can't do it they'll tell you then and if they can they're the right people to run the traps for you. They'll also keep your request confidential either way.
posted by IanMorr at 3:59 PM on July 29, 2009

The answer will depend on what sort of job you are doing, the company management, and probably many other things you haven’t specified in your question, but yes, it is possible in the general sense. Explaining your situation to your employer will obviously bolster your position.

What you are dealing with is a fairly normal part of salary negotiations, so treat it that way. Start off by asking for more than you anticipate to get and work with your employer to reach an agreement. I would (and have) actually start by asking for a “signing bonus.”

In my case, I asked for a signing incentive the equivalent of one month’s salary. I ended up getting quite a bit less, but it was still enough to pay for a month’s rent. My situation involved moving to a new city, so my employer was pretty understanding about my needs.

If they balk at giving away a signing bonus, then ask for an advance. They may still refuse to give you anything, but there’s little harm in asking.
posted by ijoshua at 4:01 PM on July 29, 2009 [2 favorites]

They might do it but I would strongly suggest you not ask them. The question can only cause more harm than good and they might take it as a sign that you are a "?". Were I to hire someone and they immediately asked for an advance I would probably put it in the form of a final pay check as they exited the building.
posted by Gravitus at 4:02 PM on July 29, 2009 [1 favorite]

get a credit card. AND THEN PAY IT BACK IMMEDIATELY!!!!!!!!!!!!!
posted by Mach5 at 4:10 PM on July 29, 2009 [3 favorites]

I did this at a job a couple of years ago. I didn't ask for it (or even think to); they simply offered, since I had been between jobs and the paychecks were biweekly. It is definitely possible, but I don't think I'd be brave enough to ask without having been offered.
posted by srrh at 4:43 PM on July 29, 2009

Oh, dear. I've been in my current position for six years loyal, hardworking and I wouldn't ask my employers to advance me money. In fact I wouldn't ever - I don't feel it's appropriate, and I would never want my employers to know my personal circumstances like that. I think you should borrow the money elsewhere.
posted by lottie at 5:21 PM on July 29, 2009

My last job I got one, but they offered.
posted by gaspode at 5:22 PM on July 29, 2009

Most employers won't do this. Too much hassle to arrange. We used to do this for foreign employees who arrived without local currency, but it would take days. Far better to talk to your bank and arrange a short term line of credit you can draw on to tide you over. As Mach5 says though - pay it off immediately.
posted by arcticseal at 5:23 PM on July 29, 2009

In my opinion, the answer to your question is "no"; this is not a wise thing to ask. Were I in your situation, I'd explain to the people for whom I need the money (if rent then landlord, if credit card company then CSR at 800 no., etc.) that you now have income coming in but you simply can't do it for the moment. If that wouldn't carry through, then my next step would be to get a payday loan. Important caveat: payday loans are awful, usurious things and perhaps one of the worst financial instruments out there, and you should get it paid off and begone from your financial books literally as soon as humanly possible, but it seems to me this is the very situation they're tailored for.
posted by WCityMike at 5:32 PM on July 29, 2009

The answers here regarding pay negotiations seem to make the general assumption that there aren't a dozen other equally qualified applicants for the position, who aren't asking for favours. In this economic climate, that's the most likely scenario. I don't think it would be a good call to ask this question at any time, but certainly not first week or during negotiations over pay. Way to look like you'll take anything that's offered out of need.

OP: it sucks, but really... ask a friend or family, then pay 'em back pronto.
posted by lottie at 5:36 PM on July 29, 2009 [1 favorite]

I did it when I got my first job out of college. It wasn't a big deal. We only got paid once per month, and I needed to buy a car if they expected me to actually show up for work.
posted by COD at 6:30 PM on July 29, 2009

After you get the offer, they should give you access to the employee handbook. Check in there before you ask; my employer has a specific policy against this practice which is clearly explicated.

Some religious (and non-religious) organizations provide no-interest loans. Google "your new city" and "free loan society" to see if there are options.
posted by charmcityblues at 6:37 PM on July 29, 2009

negotiate for a signing bonus.
posted by rhizome at 9:06 PM on July 29, 2009

My company offered to do this unprompted when I started. I didn't take them up on it, but it isn't that uncommon. Unfortunately I never encountered with any entry level jobs of the type you get right out of college.

My dad has a company and I know he's done this for new grads who are absolutely broke, but my dad is a pretty understanding kind of a guy. I wouldn't say this is standard business practice. Also, with those people I believe they were relocating and while the company wasn't paying for it, they were will to give them an interest free loan to get them there.

If they don't offer, I would ask your parents and just pay them back asap. This is also what 0% credit cards are for, however those are harder to come by now especially if you don't have credit.

If you absolutely have to ask, I would opt to ask to be paid weekly in the beginning then they are still only paying you for work you've done, but you don't have to wait several weeks for the money. But yeah if at all possible this is what parents are for.
posted by whoaali at 9:38 PM on July 29, 2009

My first company also offered this unprompted. For some other data this was a Fortune 50 company and we were only paid monthly.
posted by mmascolino at 9:55 PM on July 29, 2009

I've asked for and received payroll advances in the past (the far, far distant past...think '80s). I think it depends on the culture of the company that you've hired on with. If you do ask for an advance - go straight to HR or the financial office - don't ask your boss. The finance guys have no reason to bust your balls - they will tell you what the policy is straight up and will most likely not tell anyone else that you asked.
posted by The Light Fantastic at 10:20 PM on July 29, 2009

I think part depends on how big the company is. I guess my main worry would be that if my immediate supervisor knew I was financially desperate, it might make our working relationship a bit weird. So I'd be most concerned about this at a small business, where there's "the boss" and that's it. At a large company, then you'd ask HR, not your supervisor, so I wouldn't be nearly as reluctant.

I have gotten an advance. It was a Fortune 50 company, we were paid monthly, and I was a new grad. I can't remember who asked who.

I think when reading people's reactions in the previous answers you need to keep in mind that asking for an advance when you start is very different than asking after you've been working for a while. When you start, it's understandable that you'd be short on cash. After you've had the job for a while, then asking for an advance would seem much more skeevy.

No matter the economy, I can't imagine you getting fired for asking about this your first week. Are they really going to want to go through interviews all over again for no good reason?
posted by sesquipedalian at 10:34 PM on July 29, 2009

Like many have said, at my first job out of college the HR manager offered. There was a delay before payroll kicked in so I belive it was not unusual.

If your new employer hires many people right out of school I think it should be okay to ask.

Have a backup though, your offer letter may be enough to get a modest loan from the bank.

Best luck!
posted by deanj at 11:34 PM on July 29, 2009

I've had this offered to me by hiring managers after or on the first day. I've never excepted though. When I moved cities for a new job, they gave me a generous signing bonus and paid for my relocation.
posted by !Jim at 12:19 AM on July 30, 2009

I have asked employers for an advance twice in the past seven years. Both times it was granted, but both times it was for a relatively small amount (less than 1/10 of monthly pay) and both were from the same family-run business. I would not ever ask it of my current large, faceless and heartless corporate employer, and certainly not just after I start.

The current crop of new trainees are being asked to work SIX WEEKS before they're given their first paycheck. This place stinks and would look upon a request for an advance with deep suspicion. If you are in the UK, the Jobcentre have arrangements for just such situations; they provide access to (relatively) low interest short term loans to tide people over who are just starting a new job.
posted by fearnothing at 3:52 AM on July 30, 2009

My company also offered this unprompted (and it was a great help), because they knew there was going to be a significant gap between me leaving my old job and starting at my new one. It's likely if they have found out during the hiring process that you have been looking for work for a while they'll offer.

I'll repeat my general advice about the way companies treat their people - if it's a company that would look askance at something you would consider reasonable, it's likely a company you will experience issues with working for further down the road. If you can't:

- negotiate pay openly and directly
- ask for an advance on your first paycheque after looking for work for a long time
- negotiate benefits, holiday time etc
- ask about any facet of their business that's reasonable to your job and future prospects

then in my book it's a massive red flag. There's an odious undercurrent in hiring practices which I think is getting worse with the recession that oh my god you should be sooooo grateful to us for deigning to hire you, you're obviously some kind of horrendous bad apple if you ask about working hours, pay, benefits or anything else, just shut up and take what's given to you. Which is total bullshit. Even for entry level, minimum wage jobs, it's total bullshit.

Any HR person worth their salt should understand that people who have not been working for a while are a) not inherently "bad" and b) might be a bit light in the old wallet and require a couple of hundred to make rent/get to work/buy noodles. Any HR person who would withdraw an offer because someone asked, in good faith, for this kind of thing is probably a good indicator of how the company will treat you down the road.
posted by Happy Dave at 4:34 AM on July 30, 2009