Sometimes opportunity knocks at your door but and if you’re lucky enough you’ll be able to capitalize off it. Now when I say “lucky” I not thinking of the magical mythical thing you see in movies. Naw I mean are you prepared? Like the saying goes. Luck is when opportunity meets preparation. Sometimes that preparation means having access to capital. Which can mean. Can you take out a loan or have a line of credit you can access at any given moment? With SoLo Funds artists now have the ability to get access to the capital they need and be prepared for any opportunity.
SoLo Funds was created is a Los Angelos based fintech company, created by Rodney Williams and Travis Holoway, who are black entrepreneurs that created Solo Funds for people who were needed just below the $1,000 cash threshold that banks and other traditional lending institutions usually set as their minimums. Solo Funds was also created to keep customers away from predatory payday loans that charge astronomically high interest that can reach upwards of 400%. This is where SoLo Lends comes in. It created a platform for peer-to-peer micro loans that range from as low as $20 up to $565. Also, it has a 15% max interest that a lender can ask of a borrower. The most important thing about the app is that it also gives a community of people who wouldn’t qualify for banks to be able to have access to capital. There’s even an option to not charge interest. On the lending side, a lender can choose a loan to fund and then agree to the terms of interest rate or negotiate the terms so that the borrower has to then accept.
So what does this mean for artists? Imagine if you were able to get a feature from an artist that has a buzz but you were only $300 short. You could ask your inner circle of family and friends. But what if still no one would let you borrow the money? And in this day and age of internet, the prices of artists when they're about to blow can go up overnight. Just ask the promoters who booked Ice Spice right before she blew up. They were surprised when she upped her price even if it meant cancelling an already agreed upon performance. SoLo Funds could bridge you that $300 til your next payday. Another scenario is if you're recording your album and you need $275 to finish the mixing and mastering. SoLo Funds could bridge that gap. For an artist SoLo Funds could be the access to capital that could help you get your “lucky” break.
What about for those wanting to be label execs? If you want to be an exec than SoLo loans is the perfect place to get your feet wet. You can find an artist looking to fund a project and then put up the capital. Your return is then tracked in the app. You get exposure to what lending means and how to find a good deal. This could eliminate the handshake deals that people do in business because SoLo Funds actually draws up the contract for you. So, a person could say I’ll loan you $200 for your project. Just go on SoLo Funds and I’ll approve your loan request. Another scenario. An artist approaches you about needing money to go to buy merch, but they don’t have the cash right now. You as an exec sees this as an opportunity to make some money and it’s actually going towards something that will make money for the artist and help pay the loan back faster. SoLo Funds can help facilitate this transaction seamlessly.
I’ve personally tried the SoLo Funds on the lending side and have tested out what it means to find a good deal. WARNING: I am not a financial advisor nor am I a fiduciary, and information given is purely for entertainment purposes. Please do your own independent research and contact a financial advisor for you investing needs. Here is the formula that worked for me. 1) Never loan out to a person that has a score below 60. 2) Never loan out to first time borrower. 3) Never loan out to a person whose last payment was late. Here are my personal wins and losses. As you can see I even went a little astray from my own rules.
The risks. With anything there are risks. Especially on the lending side. If a borrower doesn’t payback a loan, then you’re obviously out of your investment. But now there’s also a Loan Protection feature that allows for lenders to get some of their principal back if the lender misses their payment due date. But if you don’t take out the Loan Protection then after 35 days the loan will go into collections where a collection agency will attempt to collect the loan amount, with the only catch being you only get 30% of your principal back. So, for a $100 loan that’s only $30 you’ll ever see. There’s also a Missed Payment feature that sometimes SoLo Funds gives the option to lenders to get 50% of their investment back. That’s it! It goes without saying be careful out there. Risks do apply.
So, to wrap it. SoLo Funds is a place where artists can have access to capital using a peer-to-peer app that does not charge predatory interest rates or need good credit to apply for. On the flipside, people looking to help fund projects and make a little money can now get exposure to making deals while helping artists. It’s a win-win-win in my book. The only thing SoLo Funds can’t help you do at this moment is to help you build your credit. Nor will it help you become an accredited lender. But hopefully this will change in the future. Try it out for yourself and let me know what you think.