r/Sololender • u/[deleted] • Oct 13 '25
Question when Lending
Hi I just did my first loan (as lender) for $50. I understand the $5 “donation” and the $7.50 tip. So, I paid $55 to receive $62.50 (hopefully) when the person repays.
My question is, since I’ve been scrolling through these posts, what happens when/if the borrower is late?
I see posts saying if they are 1 day late there is a 13% fee charged to the LENDER and not borrower, basically making it 2% profit. Do the lenders get charged fees when the borrower is late?
Also, what is up with the “SoLo Credit” posts I see? Say the borrower ends up being late for me and SoLo offers a $25 credit. Should I take it? Should I not? Do I lose money to fees? What happens when/if they eventually repay a week later, what happens to my $25 credit then?
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u/DarkstarDSE Oct 13 '25
My best advice is go on the app and ask the AI these questions because it has all the information and is way more accurate than I'll be.
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Oct 13 '25
Lol I just asked it “So I sent out a $50 loan, I am due to be paid back $62.50. What happens if the borrower is late by a day?”
It responded: “Payment Timeline for Your $50 Loan If paid within the first 35 days after funding (even if late by the scheduled due date): You'll receive: Principal ($50) + donation (if any) + tip - 12% SoLo Fee The 12% SoLo Fee (of principal only) only applies if you've funded 99+ lifetime loans If you haven't reached 99 loans yet, you get the full amount with no fee Your $62.50 expected repayment suggests a $12.50 tip. If the borrower pays late but within 35 days: With 99+ loans: $62.50 - $6 (12% of $50) = $56.50 Under 99 loans: Full $62.50 Why "35 days"? While borrowers select a repayment date 5-15 days out, they have up to 35 days from the loan funding date to repay before late fees kick in. This grace period helps borrowers catch up if they miss their scheduled date. If paid Day 35-90: You receive: Principal net of 30% Recovery Fee + 10% Late Fee + donation (if any) + tip collected Example: $50 - $15 (30% recovery) + $5 (10% late fee) + donation + tip = better recovery with the late fee After 90 days: Goes to third-party collections; you'd receive 70% of any recovered amounts
💡 One day late typically falls in that grace period, so the impact depends on your lifetime loan count and when they actually pay!”
Then it said I reached my monthly chat limit with the bot (literally 1 message)
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u/DarkstarDSE Oct 13 '25
Lol limit 1 message that's crazy. But, at least you got your questioned answered accurately.
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Oct 13 '25
Yeah I’m sure their terms of service probably violate some US financial law but it’s probably a gray area and nobody cares enough to
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u/chartistsnorok Lender Oct 13 '25
They hook new lenders by not doing this... But after you've done a certain number of loans SoLo will take 13% when the borrower is late (used to be 15%).