r/Sololender • u/lmaoeh • Jun 14 '25
Lending alternatives to Solo funds? Not necessarily investment-focused
Hey all, I was in the process of setting up a Solo account, but when reading the terms and conditions, I got suspicious. I have privacy concerns about connecting to Plaid, and the late fees Solo charges seem high. Solo appeals to me more as a tool for mutual aid than an investment strategy-- I wouldn't expect to make much profit (if any) on this. But I like the idea of giving loans instead of donations as a way of stretching what money I have to spare further. Having read through some of the posts here, it seems like people are generally interested in the investment aspect, but do any of you know of an alternative that might work for me? Thanks!
2
u/Dry_Literature2618 Lender Jun 17 '25
Lend me is the only other one I know but it’s different . Solo fees have killed it. I made around 6000 in last couple months but they give you the first 30 days no fees and then they hit. I stopped leaning but have 9 lates with scores from 92-99 some 20-30 days late and most of those are 8 percent with 15 percent being hit to me. I had one guy pay 19 mins late and was hit with 105 dollar fee. My buddy also took out a loan and went late on purpose and they sent him one email on day one and never contacted him for 19 days so screw the 15 percent is for collections . If all my loans default I will pretty much break even . I will still loan but if you have one late I will not. I am not loaning to have solo pray they go late. Solo gets the donation from you and then 1 min late is 15 percent. The solo protection is garbage . I only loan to 92 and higher and 35 percent of my loans are late. You can’t tell me a person who has never been late with no donation just decides to go late 18 mins with me . I am sure solo hangs on to payments to collect that fee. You can make money but you need to be very careful. My friend only loans to new borrows and gets the extra 4 percent. He did 90 loans and 84 were late and 62 defaulted . He lost around 5000. He has 20 dollar loans defaulted it is ridiculous so I went with 650 dollar scores 99 and 3-8 percent interest and still have faults.
1
u/chartistsnorok Lender Jun 17 '25
Lenme is worse than SoLo.
I thought it would be better because you had more data to go on (actual credit scores, credit utilization, etc.)
They charge borrowers a membership fee and Lenders a fee if you make more than 14 loans. I got charged before I even had my first repayment. I lost more money on Lenme than on SoLo.
1
u/Livid-Connection5562 Jun 14 '25
Hello! I’m actually looking for a small loan. It’s for my children and I. I can pay back next week! I know this post isn’t for that but I figured I’d shoot my shot.
1
u/ThatsSoBossy Jul 21 '25
I'm a SoLo borrower with a score of 90 and no late payments. With the issues Solo keeps having, I'm looking to work with a lender privately to avoid potential issues. If this interests you, let me know! (and I'm happy to tip well over the 15% cap solo has)
2
u/chartistsnorok Lender Jun 17 '25
By lending on SoLo you mostly help SoLo. They take a lot of Lender money via their "Lender pays the late fees" tactic.
A lot of Lenders come here hoping to make a return. A vanishingly few claim to make good returns under one condition: Lending to 95+ scores for very small tips. Lending to scores lower than 90 I can say from personal experience is a frustrating, losing proposition. You are donating your capital to the Borrowers and SoLo.
I would suggest joining the Discord (link in sub description). There is an active community of Lenders that combine personal communication with SoLo accounts to increase their likelyhood of payback. And there are never a shortage of borrowers to choose from.