Ex-Google UK chief Dan Cobley has launched new fintech (financial technology) company, SalaryFinance. The new company allows working people to consolidate their debts and loans into one SalaryFinance loan, and pay them back through salary deductions.

Loans are offered at a 7.9% fixed APR, compared to 24% APR on loans less than £5000 from the big 4 UK banks (June 2015), according to SalaryFinance website.

These loans are being offered by Zopa and Ratesetter, the UK’s two biggest peer-to-peer lending firms. Loans similar to this are popular in Brazil, Mexico and some parts of the US, while similar programs are already offered in the UK.

There is no cost or liability for employers, who can sign up via their website and offer the programme through their pre-existing employee-benefit portals. Companies such as Saga, Agilysy and AO.com have already announced deals with the new fintech company.

SalaryFinance raised £3m in development and operating costs from Cobley’s venture capital fund Brightbridge to help start the company.