Lending on SoLo Funds offers more than competitive returns \u2014 it gives you a direct way to create impact while generating income. But to maximize those returns, it\u2019s important to understand the fees involved and how they fit into the lending timeline.<\/p>\n
This guide walks you through every potential fee, from the moment you make a loan to the final repayment \u2014 including how these costs compare to yield-generating alternatives like stocks, ETFs, or crypto.<\/p>\n
When you fund a loan, you\u2019re providing both the principal amount and fronting the SoLo Donation on behalf of the borrower:<\/p>\n
You fund: Principal + Tip + SoLo Donation<\/strong> (all borrower-selected).<\/p>\n<\/li>\n The donation is paid to SoLo by the borrower, but temporarily fronted by you until repayment.<\/p>\n<\/li>\n At repayment: The borrower pays back the full amount, you keep the principal + tip, and the donation goes to SoLo.<\/p>\n<\/li>\n<\/ul>\n Example:<\/strong><\/p>\n Loan principal: $100<\/p>\n<\/li>\n Tip: $10<\/p>\n<\/li>\n SoLo Donation: $8<\/p>\n<\/li>\n You fund: $118<\/p>\n<\/li>\n Borrower repays: $118 total<\/p>\n<\/li>\n You receive: $110 (principal + tip), SoLo receives $8 (donation).<\/p>\n<\/li>\n<\/ul>\n If the borrower repays on or before the scheduled repayment date:<\/p>\n You receive 100% of principal + tip.<\/p>\n<\/li>\n The borrower\u2019s donation goes to SoLo.<\/p>\n<\/li>\n No additional fees apply.<\/p>\n<\/li>\n<\/ul>\n The grace period begins immediately after the scheduled repayment date and lasts 20\u201330 days depending on the loan\u2019s length.<\/p>\n For new lenders with fewer than 100 loans funded<\/strong>, no extra fee applies (the SoLo Fee is waived).<\/p>\n<\/li>\n For all other lenders<\/strong>, a SoLo Fee of 12% of principal<\/strong> applies only on non-SLP loans repaid during the grace period.<\/p>\n<\/li>\n<\/ul>\n Example (with SoLo Fee applied):<\/strong><\/p>\n Loan principal: $100<\/p>\n<\/li>\n Tip: $10<\/p>\n<\/li>\n SoLo Fee: $12 (assessed when payment is late)<\/p>\n<\/li>\n You receive: $98 ($100 + $10 \u2013 $12).<\/p>\n<\/li>\n<\/ul>\n Loans repaid after the grace period but within 90 days of the scheduled payment date incur additional deductions:<\/p>\n Recovery Fee:<\/strong> 30% of principal.<\/p>\n<\/li>\n Late Fee:<\/strong> 10% of principal (paid by borrower, goes to you).<\/p>\n<\/li>\n Transaction Fee:<\/strong> Borrower pays 2 \u00d7 [(0.009 \u00d7 principal) + $0.70] to SoLo.<\/p>\n<\/li>\n<\/ul>\n Example:<\/strong><\/p>\n Loan principal: $100<\/p>\n<\/li>\n Tip: $10<\/p>\n<\/li>\n Late fee (10%): $10 (to you).<\/p>\n<\/li>\n Recovery fee (30%): $30 (deducted).<\/p>\n<\/li>\n Borrower also pays ~$2.48 transaction fee to SoLo.<\/p>\n<\/li>\n You receive: $90 ($100 + $10 + $10 \u2013 $30).<\/p>\n<\/li>\n<\/ul>\n If the loan isn\u2019t repaid within 90 days of the scheduled payment date:<\/p>\n It goes to third-party collections.<\/p>\n<\/li>\n Recovery chances drop significantly.<\/p>\n<\/li>\n Collection agencies retain up to 30% of recovered funds.<\/p>\n<\/li>\n<\/ul>\n Here\u2019s what you need to know about fees you might pay as a lender:<\/p>\n SoLo Protection (SLP) Fee:<\/strong> 6% of principal (optional insurance to cover non-repayment).<\/p>\n<\/li>\n Instant Withdrawal Fee:<\/strong> 1.75% (optional, for immediate access to wallet funds).<\/p>\n<\/li>\n ACH Withdrawal:<\/strong> Free (standard 1\u20132 business days).<\/p>\n<\/li>\n SoLo Fee:<\/strong> 12% of principal (applies only on loans repaid during the grace period if no SLP is used).<\/p>\n<\/li>\n<\/ul>\n All costs are transparent and shown before you lend.<\/p>\n Unlike traditional credit products, SoLo isn\u2019t about extracting interest \u2014 it\u2019s a peer-to-peer model where borrowers and lenders both benefit.<\/p>\n Stock & ETF Portfolios:<\/strong> Average long-term returns of 6\u201310% annually, with volatility and no direct social impact.<\/p>\n<\/li>\n\n
\n2. On-Time Repayment (By Scheduled Date)<\/h3>\n
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\n3. Grace Period Repayment (20\u201330 Days From Scheduled Payment Date)<\/h3>\n
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\n4. Post-Grace Period Recovery (After GP Ends, Before 90 Days)<\/h3>\n
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\n5. Default Period (90 Days After Scheduled Payment Date)<\/h3>\n
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\nOther Lender Fees on SoLo<\/h2>\n
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\nHow This Compares to Yield-Creating Alternatives<\/h2>\n
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