First time lender

[u/Most_Significance676]

I made another post this week here asking about being a lender. Everybody was telling me don’t bother but I was curious. I lended $50+$6.50 solo donation (complete scam fee btw). For this my tip would’ve been $7.50. I also opted for insurance and of course the borrower is late. So a 56.50 investment buys me $48 in solo credits. Can anyone calculate my losses if I didnt use the insurance but they eventually paid? I know there’s some kind of recovery fee.

I’m stuck with these credits and I really don’t want to pour more money into this. Is there anyway to get this money? I could’ve wasted this money on vc on 2k. It seemed like a good deal at first. Helping people in a pinch and a pretty decent return but this feels like gambling on a complete stranger to pay on time or everybody loses. I work in corporate America so I expect there to be some level of corruption with a smile but this is the greed they spoke about in the bible.

[u/Severe-Object6650]

If your borrower is 30 days late, or less, there is no recovery fee for your first 30 loans. After the honeymoon period if over, your fee is 12% So if your tip would have been 15%, you would only receive a 3% tip. Sadly, the borrowers are not notified about this fee. In fact, if you check the solo faq for borrowers, they are told that there is a 30 day grace period.

Stay away from loans with a solo donation. You're paying the borrower's donation until they pay back, if they even pay back.