The Palo Alto-based company skirts regulation as a payday lender because it doesn’t charge interest on the cash that it fronts to customers. Instead, the company asks that users pay a small voluntary fee for access to their money ahead of their payday. i For investors like hedge funds and banks, the appeal of giving money to Activehours to fork over to salaried workers ahead of payday is likely a guaranteed rate of return from the cash that the company makes from the “tips” it gets from its users. The company would not disclose the size of its credit facilities, but for banks and alternative investors that are looking for higher yields than a savings account, the cash advance businss can be attractive.

https://techcrunch.com/2017/09/21/activehours-raises-39-million-for-its-new-take-on-cash-advances/