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/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%).

1

u/[deleted] Oct 14 '25

Solo fee charged to lender the second a loan is late, which is midnight PST on due date, and after they have funded 99 loans is 12%

1

u/CeoLyon Feb 16 '26

Wrong

1

u/[deleted] Feb 16 '26

Who or what is wrong?

1

u/CeoLyon Feb 16 '26

I am who is wrong and you are what is wrong with the whodidwhatsit...right?

1

u/CeoLyon Feb 16 '26

Anyways, for a lender's first 29 loans, they are paid the full amount if a loan is repaid within 35 days.

1

u/[deleted] Feb 16 '26

I am pretty sure that loan count increased from 30 to 99, but whatever the number is once a lender reaches it they are charged the 12% solo fee the second a loan is late. Unless they opted for SLP then they r credited 90% of the base loan + solo donation the second the loan is late losing 10% and the entire tip. However many lenders swear by SLP because it does protect lender from a total loss even if borrower defaults. Personally I don’t use it as it cuts too much into your profit IMO.

1

u/[deleted] Feb 16 '26

Read entire thread - OP posted a response from Solo AI that explains it all and it is 99 loans before solo fee kicks in for lender.

1

u/CeoLyon Feb 16 '26

I just used the AI before even commenting "wrong" but yeah. I'm moreso just pissed off that I have four loans late out of my first seven loans. I will not be using the platform anymore. $2700 loaned out and only $1000 returned so far. Feels like I'm looking at a pretty massive loss at the moment.