SoLo is a new way for people to have an impact  with an eye on financial and social returns. Every loan offers a borrower an equitable helping hand and a lender a potential good financial return. Many of our members manage their activity on SoLo and have learned how to mitigate the risks of non-repayment. Below are the tips they’ve shared with us to help new members get started with lending.

Use Discretionary Funds

Don’t lend money you can’t afford to lose. There is always a risk in lending to someone you don’t know, and while SoLo does its utmost to prevent borrowing and protect lending members against loans that are not repaid, they can and do happen.

Look for Higher SoLo Scores

Look for borrowers with a higher “SoLo Score,” a number ranging from lows in the 40s to a high of 99. The score appears to the left of the requested loan amount and has a green, yellow or red background to reinforce a score that’s high, OK, or low. These scores update constantly based on a borrowing member’s payback record, machine learning algorithms based on community activity patterns, and other financial metrics we’re assessing in real-time. 

Look at Transaction Histories

Look for borrowers who have made multiple transactions and have proven their ability to pay back loans on time and their commitment to the SoLo financial model. When you select a borrowing member’s funding request, you’ll see a topline transaction history beneath their personal details on the loan request. If you click on their request, you’ll have the option to click on “loan history” to see specific details, like loan amounts and payback times. Some loan requests will have “first-time loan” beneath the name. These members have been flagged by SoLo, but because they don’t have a track record they may not be your preferred choice as you start lending.

Details Matter

Look for borrowers who’ve uploaded a profile picture and provided a more specific reason for their request—” car repair bill” vs. “bills.” The extra time they’re taking to present themselves well in the Marketplace speaks to their commitment.

Know the Process

Look closely at the terms on your loan. Read up on how SoLo handles missed loan payments, pursues recovery of your funds, and eventually transfers an account to a third-party collections agency in worst-case scenarios.

As a lending member, you play a crucial role 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 return options with above-average returns than traditional products.