Considering Becoming a Lender

General
1

I’m thinking about becoming a lender on Lenme, Solofunds, and the borrow page on Reddit. I’m looking for suggestions and advice on how to get started. What are some things you wish you knew before starting?

Right now, I had to borrow from the borrow subreddit. The help I got from a kind person inspired me to want to help others.

I know it’s important to be in a good financial position myself, which is why I want to start with small amounts and build up an account for lending. I plan to give out loans of no more than $100 to individuals to start. I don’t expect to lend more than that, even if I can give out multiple loans. It all depends on my experience and if I see potential in this.

That’s why I’m here seeking advice and personal experiences. I want to learn from others’ mistakes, successes, or any general tips you might have. Thank you in advance!

2

Honestly, I would advise against it.

3

Zachariah said:
Honestly, I would advise against it.

Against it? Why?

4

True said:

Zachariah said:
Honestly, I would advise against it.

Against it? Why?

There are many asset-backed investment options out there. Why go for something without backing, with no government regulations, complicated taxes, and the risk of losing your investment?

High returns come with the risk of losing your principal amount too.

5

@Zachariah
Sounds like gambling. Thanks for sharing!

6

Don’t do it! Just don’t.

7

You probably won’t make much and could lose a lot. These borrowers are often low-quality. There’s a reason banks don’t lend to them.

8

Fenix said:
Ensure that the borrower will use the funds for investments or starting a business.

I hadn’t thought of it that way. Thanks for the advice!

9

True said:

Fenix said:
Ensure that the borrower will use the funds for investments or starting a business.

I hadn’t thought of it that way. Thanks for the advice!

One piece of great advice I received was to focus less on products and more on the lender’s business acumen. When I shifted my focus, I saw new perspectives. Good luck!

10

Please don’t lend out your money.

These sites are like Uber; they just connect you to customers. They have no control over what happens.

DON’T DO IT.

11

The mod of the r/borrow subreddit is quite arbitrary.

12

I just found out about this subreddit. If the borrower has a decent history, it should be safe. I’d recommend starting with small amounts like you mentioned to be extra cautious.

13

Noor said:
I just found out about this subreddit. If the borrower has a decent history, it should be safe. I’d recommend starting with small amounts like you mentioned to be extra cautious.

That’s what I was thinking. My initial goal is to lend small amounts that are repaid quickly, around $50 or less. I’m not sure if giving one loan of $100 would be very beneficial at first. I plan to only lend to people with a prior loan history. Lending to a first-time borrower might not be the smartest choice for me right now. Thanks for sharing.

14

@True
As long as you do your research and minimize potential risks, I think you’ll be fine. :slight_smile:

15

Noor said:
@True
As long as you do your research and minimize potential risks, I think you’ll be fine. :slight_smile:

Thinking you’ll be okay isn’t a great strategy.

16

Zeke said:

Noor said:
@True
As long as you do your research and minimize potential risks, I think you’ll be fine. :slight_smile:

Thinking you’ll be okay isn’t a great strategy.

I’m just saying that if he wants to pursue this, there are ways to minimize risk.

17

@Noor
Yes, I agree, but there are plenty of less risky options out there.