SoLo Funds App Review: What You Need to Know

Quick take: SoLo Funds is a borrower-friendly platform that lets you create a small-dollar loan request that can be funded by members of its network. There are no set fees, making it a cheaper option than many competitors. However, since lenders have to decide to fund your loan, you might not get cash as quickly as you need.

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Pros & Cons

Pros

• SoLo Score looks beyond your credit score to determine risk, potentially making borrowing money more accessible

• No set fees

• Borrowers set terms 

Cons

• Loan terms max out at 35 days

• New borrowers can only request a maximum of $100

• Instant funding requires a fee

Company Overview 

SoLo Funds was founded in 2018 with a mission to implement a new model of community banking. Its peer-to-peer lending marketplace has served over 2 million members and lets individuals set their own terms. 

SoLo Funds is the first Black-owned company with B Corp status in the U.S., indicating it meets certain standards of accountability, transparency and social impact. It says 82% of its member base is located in underserved ZIP codes.

In addition to its lending marketplace, the company offers a debit card and a “personalized AI co-pilot” called SoLo IQ that surfaces insights into your finances.

Key Features

SoLo Score

In keeping with its emphasis on accessible lending, SoLo takes a unique approach to assessing risk. While it’s ultimately up to members in the SoLo Funds network to decide whether they want to lend to another member, the SoLo Score uses cash flow data to predict how likely you are to repay and translates that into a numerical score.

The score ranges from 20 to 99, and every member starts out with a maximum score of 60. As members borrow and repay money over time, their score will increase. For those with low credit scores or thin credit profiles, this could make borrowing money more attainable, since many personal loans have minimum credit score requirements.

Tip and Donation Model

Borrowers on SoLo Funds can choose to leave a tip, which goes to the individual lender rather than SoLo itself. This is completely optional, though the company’s resources for lenders indicate that offering a tip increases your odds of getting matched with a lender (which makes sense, since lenders will likely want to choose the most attractive offer). SoLo Funds says the average customer tips 10.4%.

You can also choose to leave a donation, which goes to SoLo Funds itself. The average donation is 6.2%. 

The key is that every borrower chooses the amount they’ll pay as a tip, donation and late fee when they set up a loan request, and most charges aren’t required. Many other lenders make these fees mandatory. 

SoLo Protect

SoLo Protect is another optional add-on. It offers insurance to cover your repayment if you’re not able to repay the lender, for a fee of 6% of the principal amount you’re borrowing.

Lend As Well As Borrow Money

SoLo Funds lets you lend money to potential borrowers in addition to seeking a loan. It’s a unique feature that could be worth exploring if you have the extra funds and want to support the mission of making lending more accessible to traditionally underserved borrowers.

The website offers guidelines on the best practices for approaching the marketplace from the lender side, including how to evaluate risk and prioritize which borrower profiles to work with based on your goals.

How To Get Started 

The process for requesting a loan through SoLo Funds is pretty straightforward. Follow these steps:

1. Create an account, either on the website or through the SoLo Funds app.

2. Verify some basic personal information, including your SSN, and link an external bank account.

3. Once your account is verified, you’ll be able to create a borrowing request. You’ll include the amount you’re looking to borrow, what you need it for, when you’ll repay it and the tip you’re offering (if any).

4. Wait for a lender to fund your loan request. Once you have a lender, you can choose to receive your funds immediately for a 1.75% fee, or wait 1-2 business days for a free standard ACH withdrawal.

Comparable Options

SoLo Funds stands out for its specific peer-to-peer approach for accessible small-dollar loans, but there are some alternatives that could also be relevant if you need quick access to a small amount of cash.

When Dave might be better: If you need to borrow more than $100 quickly and you’re a first-time SoLo Funds user, Dave could be a better option to get around SoLo Funds’ first-time borrower cap of $100. Dave tends to charge more fees, but you won’t have to wait to find a lender willing to fund your loan request.

When Earnin might be better: Earnin could be a better fit if you need to borrow more than a few hundred dollars before your paycheck hits. Unlike the other two options, Earnin offers earned wage access, meaning you’re getting your already-earned money from your paycheck early with the expectation that you’ll repay it by your next payday. Earnin has potentially higher borrowing limits, too, and it doesn’t charge any interest or fees beyond an optional instant transfer charge.

Who It’s Best For

SoLo Funds is best suited for borrowers looking for flexibility who aren’t well-served by traditional lenders. 

It could be an option worth considering if:

• You have a thin credit file or low credit score and can't qualify for traditional loans

• You need a small amount of cash quickly and can repay within 35 days

• You're comfortable with a marketplace model where funding isn't guaranteed

• You want to avoid mandatory fees and prefer to set your own terms

• You're an existing SoLo member with a strong repayment history who can access higher limits 

Final Take 

SoLo Funds takes a unique approach to small, short-term loans by connecting borrowers with lenders who can agree upon the terms and fees themselves. For borrowers who aren’t well served by traditional lenders with more restrictive requirements, it could be a decent option. Its fee structure is more competitive than some alternative products, though the downside is that you might not get matched with a lender as quickly as you need.

FAQs

Is the SoLo Funds app legit?

Yes, the SoLo Funds app is legit. It’s a certified B Corp that’s been in business since 2018.

How does the SoLo Funds app work?

The SoLo Funds app works by connecting borrowers with potential lenders. Borrowers share how much money they’re looking to borrow and their preferred repayment terms, and lenders on the platform can decide which loans they want to fund.

How much can I borrow from SoLo Funds?

You can borrow up to $625 through SoLo Funds, though first-time borrowers are capped at $100 for their first loan.

Can you make money with SoLo Funds?

Yes, you can make money with SoLo Funds if you choose to be a lender. You can earn money through optional tips and potential late fees, though there is always some risk that the borrower will not repay the loan.

Is there another app like SoLo Funds?

There are other apps that are similar to SoLo Funds, though some of the specifics are different. Dave also offers small-dollar, short-term loans, but without the peer-to-peer marketplace model. There are also earned wage access apps like Earnin, which let you get a portion of your earned paycheck before payday.

Sources

• solofunds.com

• bcorporation.net

• dave.com

• earnin.com