SoLo Funds is a lending platform that allows users to borrow money from others for a short period. As a lender, you must decide which loan applications to fund. On the other hand, user reviews indicate that non-repayment is the most common issue with SoLo funds. You could lose much money if you don’t reduce the risk.

The maximum amount a borrower can borrow on the platform is US$1,000, and they have a maximum of 14-30 days to repay the loan. This platform has digitized the lending process, making it much more popular among consumers, and the user interface is easy to understand and use, making it an advantage.

This SoLo Funds Review focuses on loan lending services. Let’s look at the features, requirements, pros & cons of SoLo Funds.

About SoLo Funds

What makes SoLo Funds different is that they are not tied to employee payroll and do not lend money directly. Instead, they crowdsource the job and allow users to apply for loans in the open marketplace. Lenders take on the risk of providing loans in exchange for tips, which can be up to 12%. The exact amount of the loan is set in advance by borrowers.

Loan amounts can range from $50 to $500, but SoLo does not allow new borrowers to apply for any loan amount. Users must have a history of making loan repayments on time to increase the loan amount. This also adds to a borrower's SoLo Score, which lenders use to determine the risk of a loan.

As for borrowers who default on their loans, SoLo charges a one-time 15% late fee plus an administrative fee of $5. However, the amount you owe does not compound or increase.

How It Works

There’s no cap on how much you can put in each month, but Solo Funds has an internal tier system to reduce risk. As you become more comfortable with the risk profile, Solo Funds will increase your monthly contributions.

Because borrowers set the terms and conditions, your return varies depending on how you lend. “We’ve seen the average amount of a SoLo loan go anywhere from $200 to $500, for things like utility bills, child care, unplanned car trouble, rent, and other costs, and our average term for these loans is under 30 days.

So, the more SoLo loans you fund that match the borrower’s criteria, the more money you’ll make on your borrower tips, typically between 3% and 10%. SoLo also offers a small Lender Protection Service. If the borrower defaults, you’re credited with the entire loan principal and can apply it to another SoLo loan.

SoLo Funds Prices & Fees

SoLo Lender Protection is the only optional upfront cost for lenders. This option recovers a portion of the loan amount if the borrower does not repay you. This option is 5% of the total loan amount (5% for every $100 loan). Some loans do not qualify for this option. For example, borrowers with a SoLo Score below 50 and not setting a tip amount of 5% to offset a higher-risk loan are not eligible for this option.

If the borrower defaults, you will receive SoLo credit equal to the loan principal plus any predetermined donation amount by the borrower. You will receive refunded SoLo credits that can be used to make a new loan to someone else, and these credits never run out. You will not receive this money back as cash in your bank account without making another successful repayment loan.

When a loan is taken to collections for non-payment, the borrower incurs this additional charge as a ‘funding and repayment transaction cost.’ Synapse, the company's payment provider, appears to charge this fee as soon as the loan reaches at least 35 days of late, not just as soon as it reaches 90 days late.

How To Apply For A Loan With SoLo Funds?

Loans are processed by completing a loan request, which tells SoLo members how much you require and what they need for the loan.

• Create an account
• Complete your profile
• Get your SoLo Score Create a loan request, including why you’re borrowing
• Share the tip you’re offering
• Add your donation Select your repayment date
• Submit your loan request

A notification will be sent to you. Once you submit your loan request, another SoLo member will agree to fund your loan, and you’ll receive funds immediately. Financing usually takes 20 minutes. Borrow requests will remain active for up to 3 to 5 days, depending on your request.

Pros & Cons of SoLo Funds

Pros:

• Applying for a SoLo Funds loan is easy, and you don't need to provide any extra personal information or documents.
• You can contact SoLo Funds' technical support via their mobile app, live chat, or email.
• You can give others a microloan to help them with a challenging financial situation or buy a product or service they need.
• There is no interest rate, and you don't have to give any "thank you" tips for giving money.
• Lenders do not have to pay fees for using this app or granting loans.

Cons:

• The company's services are only available to U.S. residents and non-residents who have resided in the U.S. for at least ten years.
• Since SoLo Funds isn't a bank, its services are limited compared to traditional and digital banks.
• The maximum loan amount available for SoLo Funds is $575.
• When you apply for a loan, SoLo will ask you to add a “donate” to the SoLo app on top of your tip to the lender (starting at 7% or 3.50% for new borrowers looking for $50 loans).

Summary

SoLo Funds is a public benefit corporation with a hands-on lending model. The team has a lot of ideas for the future. They want to go global with SoLo Africa. They want to expand their banking services by launching new lending services programs.

It is free to use and register, but returns are based solely on tips, and there is no guarantee that your loan will be paid back. Hope this SoLo Funds Review has cleared all your queries.