Sorbet, a US Fintech offering employees access to the monetary value of their unused paid time off (PTO), has launched its services nationwide.
This expansion follows a strategic partnership with Lead Bank, a key player in providing financial services to fintech companies.
The timing of Sorbet’s expansion is significant, given the current economic climate and the growing trend of unused PTO among American workers.
A recent report by Sorbet revealed that 62% of U.S. employees did not use all their PTO in 2023. On average, each employee holds approximately $2,953 in unused vacation days—funds traditionally only accessible when leaving their employer.
The report also found that over 86% of employees would prefer the option to advance the cash value of their accrued vacation days, with nearly half indicating they would put the funds toward savings.
Sorbet’s solution enables employees to access the financial value of their accrued PTO as it accumulates, without needing to resign.
The platform uses a proprietary AI-powered model that predicts the future value of unused PTO payouts. Sorbet’s underwriting approach treats PTO as a financial asset, allowing employees to unlock its value while still employed.
The fintech start-up has experienced significant growth, reporting a 700% increase in revenue year-to-date and projecting a 20x growth by 2024.
Sorbet has received over 100,000 applications, representing more than $40 million in PTO value. Employees have used the funds for a wide range of expenses, including rent payments and vacations.
The partnership with Lead Bank will enable Sorbet to scale its operations across all 50 U.S. states.
Employees can access Sorbet by applying through the company’s website or through their employer if Sorbet is offered as a voluntary benefit.
The platform is available to employees of some of the largest companies in the U.S., including Walmart, USPS, Humana, Wells Fargo, State Farm, and the U.S. Department of Defense.
To qualify for a PTO advance, employees must meet Sorbet’s credit policy and proprietary underwriting criteria.
The Fintech allows approved applicants to advance up to $3,000 of their accrued PTO, with funds disbursed via ACH transfer within 1-5 business days.
Employees make monthly interest-only payments during the advance term and repay the remaining principal when they leave their company or after two years, whichever comes first. The annual percentage rate (APR) for Sorbet’s service starts at 9.99%.
Sorbet aims to redefine the role of PTO in employee compensation, transforming it from a passive benefit into an integral financial asset.
