For many families who live paycheck to paycheck, times have always been hard. The COVID-19 coronavirus pandemic has made them even harder. It’s part of the reason co-founders Travis Holoway and Rodney Williams are relaunching their SoLo Funds peer-to-peer lending platform to help people weather the financial storm.
Holoway and Williams – who also cofounded audio wireless technology company LISNR – are looking to disrupt the U.S. peer-to-peer lending market (and help struggling families at the same time) by offering interest-free loans, reported CNBC.
“We didn’t build the platform knowing the coronavirus pandemic would happen, but now that this has happened, this is an option for an alternative form of financing,” Williams told CNBC. “SoLo Funds is poised to enable $10 million in loans during this critical time.”
Holoway agreed.
“We now are facing the greatest financial emergency the nation has ever faced in recent history,” Holoway said. “Thirty-four percent of Americans have zero dollars in savings. A few weeks ago, people began to realize they may have only one or two paychecks left. Many have been furloughed and cannot go back to work.”
Listen to GHOGH with Jamarlin Martin | Episode 11: Travis Holoway Jamarlin talks to Travis Holoway, founder and CEO of SoLo Funds, a startup focused on peer-to-peer lending. They discuss Mark Zuckerberg as a liberal tech version of Donald Trump, Jake Tapper’s double standards on CNN towards Black leaders, and whether Silicon Valley has “negro helpers” who set the community back.
SoLo Funds first launched in 2018 and boasts investors like Richelieu Dennis, who is the co-founder of Sundial Brands, Shea Moisture founder and owner of Essence Magazine; and TransferWise co-founder Taavet Hinrikus.
On its website, SoLo funds states “Our mission at SoLo is to provide affordable access to loans for those in need by connecting borrowers to lenders through our convenient mobile Marketplace. Lenders earn “appreciation tips” while borrowers set their own payback terms. It’s a win-win for everyone.”
Less expensive than astronomically high-interest payday loans, SoLo Funds uses different factors than traditional creditors to determine a borrower’s creditworthiness and ability to pay lenders back.
“The FICO credit scoring system in the U.S. is outdated and broken and many individuals cannot get financing. SoLo Funds uses alternative data to deem a person’s creditworthiness, such as their cash flow, social media engagement and gig work,” Williams said.
It also offers lenders the opportunity to help others an earn money. The app has a four-star rating on Apple and has been touted by some borrowers as helping them when they needed it most.
