July 17, 2026
How SoLo Funds Makes Money and Why It Matters for Members
Quick Take
- SoLo Funds charges a platform fee disclosed in the app when a borrower submits a loan request. This fee is how SoLo generates revenue.
- Tips paid by borrowers go directly to the lender who funded the request, not to SoLo.
- SoLo does not charge interest on loans and does not require a monthly subscription for basic borrowing or lending.
- Understanding how a financial platform makes money helps members evaluate whether the platform’s incentives are aligned with their own interests.
Good to Know
- SoLo does not report to the major credit bureaus. Third-party collectors may have different reporting practices.
- Platform fees are disclosed in the app before a borrower submits a request. Review the current fee structure in the SoLo app before borrowing.
- SoLo uses a bank partner (Member FDIC). Pass-through insurance may apply. Check the Terms.
- Funding is not guaranteed and is subject to lender acceptance. Tips are voluntary and set by the borrower.
One of the most useful questions you can ask about any financial app is how it makes money. The answer tells you whose interests the platform is designed to serve. A payday lender makes money from fees and interest, which means the platform benefits when borrowers stay in debt longer. A subscription-based cash advance app makes money whether or not you use the advance feature, which means you are paying for standby access you may never need. SoLo’s model is different, and that difference matters.
How SoLo Funds Generates Revenue
SoLo Funds charges a platform fee to borrowers when they submit a loan request. This fee is disclosed clearly in the app before you submit. It is a one-time charge tied to the specific transaction, not a recurring subscription and not an interest rate applied over time.
The tip a borrower offers in their request goes entirely to the lender who funds that request, not to SoLo. SoLo does not take a cut of the tip. When a borrower sets a tip of 10% and a lender funds the request, that 10% returns to the lender alongside the principal at repayment. SoLo’s revenue comes from the separate platform fee, not from the transfer of value between borrower and lender.
Why This Matters for Borrowers
A financial platform that makes money from interest has a built-in incentive for borrowers to carry balances longer. The longer you owe, the more the platform earns. SoLo’s platform fee is charged at the time of the request, not over the life of the loan. SoLo does not earn more if you struggle to repay or if your loan extends. The incentive structure is not aligned with keeping you in debt.
The tip you offer is yours to set. It goes to a real person in the community who took the risk of funding your request. That structure is transparent in a way that traditional lending is not.
Why This Matters for Lenders
Lenders on SoLo earn through the tips that borrowers voluntarily offer in their requests. When a borrower repays, the lender receives their principal back plus the tip amount. SoLo does not take a portion of the tip. The return a lender earns is the full tip that was offered, minus nothing.
This is different from investment platforms that take a management fee or spread on every transaction. SoLo’s revenue is on the borrower side through the platform fee, leaving the lender’s return intact. Returns are not guaranteed and the loan amount may be lost. Never lend money you cannot afford to lose. For a full picture of how lending works, see our lender guide.
Comparing Revenue Models Across the Industry
| Platform Type | How They Make Money | Member Implication |
|---|---|---|
| SoLo Funds | Platform fee charged to borrower at request submission | One-time, disclosed cost. Tips go to lenders, not SoLo. |
| Payday Lender | Fees and high-APR interest | Costs increase the longer you owe. Rollover traps are common. |
| Subscription Advance Apps | Monthly subscription fee | You pay whether or not you use the advance feature. |
| Traditional Banks | Interest on loans, overdraft fees, account fees | Multiple fee layers, often not disclosed upfront. |
| BNPL Services | Merchant fees and late payment fees | Free if paid on time. Late fees apply to missed installments. |
No Advertising Revenue From Member Data
Some financial apps generate revenue by selling or sharing member data with advertisers or third-party partners. SoLo’s disclosed revenue model is the platform fee. Members should always review a platform’s privacy policy and terms of service to understand how their data may be used. Reviewing the current SoLo Terms and Privacy Policy is available within the app.
The Mission Alignment Question
SoLo was founded specifically to solve the financial access problem that affects millions of Americans, including the 198 million who need flexible capital and the 56 million who need better ways to grow their savings. A revenue model built on member debt cycles would be structurally incompatible with that mission. The platform fee model means SoLo earns when members successfully complete transactions, not when they struggle through them.
For more on how SoLo started and what the platform is built to accomplish, see our article on how SoLo Funds is reinventing banking.
SoLo FAQ: How does borrowing work?
SoLo FAQ: How does lending work?
SoLo FAQ: What is a tip on SoLo Funds?
A platform built for the community, not against it. Download SoLo Funds and see the difference.
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