SoLo Funds

            Tips to be a Successful Lender - NEW


            Top Guidelines to be a Successful Lender


            The SoLo app is a platform that empowers lenders to invest in an unconventional way. We have seen accomplished lenders over 2018 use our platform for many reasons— the two main ones being to help others and to make a good financial return. The most successful investors have maintained a portfolio with limited defaults. We connected with many of them to gather their best tips and suggestions to guide you as you lend.


            User Discretionary Funds

            Don’t lend money you can’t afford to loose. This is financial investing 101. After all, these loans are “investments” at the end of the day-- they have terms of repayment and the “tip” which means you can get back more than you put in, often within a very short amount of time. Because our platform allows for real life people to both borrow and loan, we want to see everyone succeed within the limits of their own real life circumstances. Lending money to an individual you don’t know is a risk, just like the stock market and real estate investments are risks that you could lose or gain money doing.


            Start with Small Dollar Loans

            Start with small loans. If you want to dip your toe in the water, lend $100 or less (you can filter your view of requested loans based on dollar amounts from lowest to highest in the app). This allows a borrower to prove their creditworthiness with this smaller amount and it doesn’t open up you, the lender, to as much risk as a $300 loan, for instance.


            The SoLo Score is a Major Measure but not the Only Measure

            Look for borrowers who have a higher “SoLo Score” -- aka the little colored bubble to the left of their requested loan amount in the app. Green shows those with the higher scores (100 is the highest) and then the color gets more yellow as it dips into the lower numbers in the 40’s. This score is always improving with our use of machine learning and new data metrics. It’s a clear indicator of everything that we are assessing in real time.


            The Number of Previous Transactions

            Look for borrowers who have made multiple transactions already, proving their ability to pay back loans on time and their commitment to the app platform. This will show up once you click on a requested loan underneath the borrower’s name and photo as “Completed Transactions.” If you don’t see this term that means it is their first loan request and they have no history with us. This makes them a higher risk borrower and may not be your preferred choice as you begin to experiment with lending.


            The Details Matter

            Finally, familiarize yourself with the terms of your loan and how we handle collections if a borrower does not repay on time. Fully inform yourself before taking the risk. Finally, look for borrowers who have completed their profile picture (more personalization and accountability for them) as well as the reason for their loan request.


            You the lender play a crucial part in creating a better world where everyone has access to financial resources. In this process, if used correctly, SoLo can become one of your best investment vehicles with significantly higher returns than standard savings or investment products. We look forward to continuing to provide this platform, adding more features for you as you look to lend on SoLo in the New Year.


            Thank you!

            Updated: 15 Jan 2019 04:48 AM
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