Top 5 alternatives to solo funds

The crowdlending platform is an online service for the collective financing of business companies and private entrepreneurs by independent investors. This tool for attracting investments is very convenient; it allows you to receive funds for the implementation of projects faster than in a bank and allows investors to earn interest on loans. Since the early 2000s, it has been actively developing in different countries of the world. Today we will look at 5 alternatives to SoLo Funds, see what they offer us, and whether they do it on favorable terms for borrowers.

  1. Funding Circle

Funding Circle is a decentralized platform for lending to small and medium-sized businesses, which was originally founded in the UK, and has been open for trading on the London Stock Exchange since September 28, 2018.

The Funding Circle platform was founded in 2010. Since its founding, Funding Circle has provided intermediation services to more than 90,000 companies worth more than €10 billion. Lending is carried out by attracting institutional and more than 85,000 private investors around the world. Funding Circle was the first online provider of peer-to-peer corporate loans in the UK. Since 2013 he has been working in the USA, and since 2014 in Germany and the Netherlands.

Company’s financing request

The portal allows German enterprises to apply for installment loans (annuity loans) ranging from EUR 5,000 to EUR 250,000 for a maximum of 60 months. The risk class influences the interest rate, which starts at 1.69 percent. The specific conditions (interest rates and terms) fluctuate between the countries in which Funding Circle operates. Unlike banks, Funding Circle allows you to return a business loan early at any time, with no additional fees.

A company’s financing request is filed using an online form, which also allows for the uploading of any required credit check papers. In Germany, you must provide the following documents: annual financial statements (profit and loss statements, balance sheets), current company valuations (up to two months old, including results and balance sheets), and commercial bank statements from the previous three months.

Once all relevant documents are obtained, a credit check will commence. According to Funding Circle’s policies, a loan offer can be issued within 24 hours and must be paid within seven days. 

If you’re looking for apps like SoLo, then Funding Circle might be a decent option.

  1. Renrendai

The second SoLo funds alternative is the Renrendai company. Renrendai is a Chinese company founded in 2010. Specializes in providing online loans and financial services to individuals. Renrendai is active in China, providing credit services for various purposes, including personal consumption, education, business, and others. Yields on loans range from 10% to 18%, which is higher than the 3.25% offered by one-year deposits at banks. The company also monitors default risk by measuring borrowers’ income, occupation, assets, and family connections.

The company has raised significant market capital, allowing it to become one of the leading online lending services in China.

It targets employees and small business owners as clients, charging borrowers a management fee of 0.3% of borrowed funds and a servicing fee of up to 5% for high-risk borrowers.

Terms for borrowers vary depending on the type of loan and the company’s requirements. Typically, the borrower must be an adult Chinese citizen, have a regular source of income, and provide the necessary documents to assess his or her solvency. In addition, different terms and requirements may apply depending on the amount and term of the loan, as well as the borrower’s credit history/

Renrendai was founded in May 2010 and currently has a service network covering more than 2,000 regions.

  1. SocietyOne

SocietyOne is an Australian company specializing in P2P (peer-to-peer) lending, that is, it is an app similar to solo funds. It was founded in 2011 and has quickly become one of the leading players in the Australian fintech services market. Like SoLo funds, SocietyOne connects borrowers with investors directly through an online platform, providing access to loans on more favorable terms for both parties.

The company operates exclusively in Australia and works with clients throughout the country. It offers a large selection of financial products, that is, loans.

Qualifications for borrowers typically include credit history, income, and employment requirements. Customers can apply for loans through an online platform, and their applications are assessed based on risk and repayment potential.

SocietyOne receives a return of about 5%, consisting of 1.25% “management” fees from the investor and an average of 3.5% fees from the borrower, who pays only if they pass an assessment “threshold” of their creditworthiness and issue credit to him. There are no service fees or prepayments.

  1. Auxmoney

Auxmoney operates an online peer-to-peer loan platform that facilitates transactions between individuals. The company’s peer-to-peer lending network enables private consumers to get consumer loans from private investors, allowing borrowers to borrow without the need for a bank and lenders to earn a profit.

The firm evaluates applicants’ potential to repay personal loans and allows investors to contribute directly to people or build their own portfolios by spreading their funds over many loans. Auxmoney removes the excessive cost and complexity of traditional bank lending by providing a transparent marketplace where users may invest and borrow directly from one another.

With over 45,000 funded loans, Auxmoney is Germany’s foremost online marketplace for lending from private investors to private borrowers. Over 50,000 investors have invested about 250 million in private loans on auxmoney’s platform, achieving above-average returns compared to other interest-bearing products.

  1. Smava

Smava is an excellent solo funds alternative that offers borrowers fast, simple, and cheap loans.

What advantages does Smava provide:

  • Best commissions;
  • 1.5% of the loan amount;
  • The cookie is valid for up to 60 days;
  • High conversion rates;
  • Personal and fast support;
  • Benefits for your visitors;
  • Loans also for self-employed (only a few banks offer self-employment loans);
  • High credit ranges from €1,000 to €120,000 (thus high sales commissions);
  • Annual interest rate: from 0.99%;
  • No collateral is required for lending;
  • Fast processing time (maximum 2 business days);
  • Fast loan payment (usually within 3-5 days).

Information technologies open up opportunities for forming new non-banking financial institutions, new financial services, and new methods of providing these services. What was considered unthinkable yesterday is becoming commonplace today. Banks need help: on the one hand, they manage their clients’ funds and are obliged to carefully weigh the risks and conditions for lending financial resources. On the other hand, when it comes to microfinance, traditional banking products turn out to be too cumbersome and inconvenient – then bank clients begin to look for alternatives. In this sense, it was only a matter of time before P2P collaborative lending platforms emerged, and such platforms are indeed becoming larger.

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