DoFinance provides a rather innovative offer, perfect for those who want an extra-easy P2P investment with a reasonable performance. Interest rates range from 5% to 11%, depending on the investment duration and early withdrawal terms.
My opinion on DoFinance
DoFinance offers great returns for such a simple product. Although Mintos‘ Invest & Access is an obvious choice for easy investments, DoFinance’s guaranteed returns and high transparency make it an excellent complement to Mintos.
I only regret that their offer has become a bit confusing, with many strategies to choose from and different early exit conditions !
DoFinance’s pros & cons
- It’s extremely easy to invest via DoFinance : no more complicated auto-invest setup or manual loans selection !
- 11% interest rate is great for a platform that doesn’t require any time managing your portfolio
- I appreciate the high transparency of the platform
- There are too many strategies to choose from
- The different withdrawal conditions between the offers are confusing
Overview of DoFinance’s loans
Unfortunately, choosing between the available strategies isn’t really easy. For a given investment duration, there are now many options available; the difference between them list in the interest rate, repayment frequency and early exit option.
Using the first strategy Auto Invest 5%, investors can invest for seven days to one year. In case of early withdrawal, accrued interests are paid immediately.
For the Auto Invest 7% strategy, things become trickier. The investment duration is between 2 and 60 months; it’s possible to exit early, either within a 30 days delay (which results in 5% interest), or within 60 days (in which case the investor is paid 7%).
Finally, Auto Invest 9% and Auto Invest 11% are similar; the distinction is that the latter – which yields higher interest rates – invests in loans from Indonesia. They both allow to invest for durations ranging from 6 to 60 months; interest are repaid monthly. In case of easily withdrawal, there’s a 90 days delay where interests don’t get paid.
It’s a pity that the different conditions seem to complicate the investment process ! My advice would be to make sure you won’t need the money early, so you don’t have to bother with early withdrawal distinctions.
According to this article on p2phero’s blog, the interest rate is supposed to get increased to a very nice 14% if you invest more than 25000€ (ouch). However, I couldn’t find any reference to it in DoFinance’s FAQ.
Since I took the screenshot above, DoFinance’s homepage has been redesigned and the “Factoring” strategy isn’t available anymore. However, I’m leaving this former screenshot as the new homepage makes it even harder to compare the different strategies !
Three loan originators provide the loans on DoFinance. As we’ll see below when reviewing the transparency aspect, they’re part of the same group as the platform.
There’s nearly no mention of the loan originators in the platform’s documentation or during the investment process. While this can seem suspicious at first, I suppose this was done in order not to confuse the prospective investor. Moreover, they’re mentioned on their parent company’s website‘s website, as well as on DoFinance’s blog.
The loans come with a buyback guarantee, in a way that’s totally transparent for investors; they’ll always get the planned interest rate, no matter how many loans default.
Platform’s transparency and reliability
DoFinance is a subsidiary of the large Alfa Finance group. I appreciate that the platform’s website links to the LinkedIn profiles of the founders of DoFinance, as well as part of the team. The management seems to have an extensive experience in the financial sector.
DoFinance’s blog published an in-depth management report for January – June 2019; in addition to financial reports for the group as a whole, it provided a lot of details regarding the loan originators.
Finally, statistics regarding the volume of loans and number of borrowers are available on the platform’s website as well.
Overall, I’m rather impressed by the level of transparency; it incites me to recommend DoFinance over Ekassa, in spite of the more complicated offer.
There’s no secondary market; however, investors can still withdraw their money early. As noted above, early withdrawal conditions depend on the selected plan.
Manual investing at DoFinance
While it’s possible to invest manually at DoFinance, there’s not much point in doing so. Indeed, the platform’s main selling point is the simplicity of the investment process, so why do the hard work yourself ? Moreover, for investors who are ready to spend more time on the platform, many of DoFinance’s competitors actually offer better returns.
In order to invest automatically, investors simply have to choose the desired strategy, and input the investment’s amount and duration. That’s it ! The platform will display the expected investment value, a basic information that many platforms don’t provide.
Unlike other platforms that feature an auto-invest, DoFinance won’t automatically reinvest interests.
Website’s ease of use
DoFinance’s registration process
Registration is quick and easy. The website is well designed and won’t ask you for much information, so in a few minutes your account will be up and running.
Account funding and funds withdrawal
My initial deposit (via a SEPA transfer) was processed quickly.
Website’s design and ergonomics
The combination of limited features and a well-thought interface makes DoFinance’s website very pleasant to use. But of course, as you won’t need to spend any time baby-sitting your investments, I bet you won’t visit their website often after selecting your investment plan !
Available languages & translations quality
The English version of the website is well translated.
Due to DoFinance’s very simplified investment offer, there’s no need for much reporting. The only interesting data are the accrued interest and the completion date of the investment !
There’s a rather complete FAQ (Frequently Asked Questions) available, as well as an overview of the investment process.
It’s possible to contact DoFinance via e-mail or live chat.
Communication from the platform
DoFinance will send a weekly account overview; additionally, they also send a newsletter in order to announce new products.
Actual performance of my DoFinance portfolio
At the end of January 2020, the XIRR for my DoFinance portfolio was 10,63%.
As there’s no concern of default or loans availability, you get what you sign for. No more, no less !
Don't hesitate to read my most recent crowdlending portfolio review for detailed platforms performance comparison as well as historical performance.
Portfolio creation date
I created my DoFinance portfolio in August 2017.
DoFinance's main competitors
For a detailed comparison of the different p2p-lending platforms offering a very easy way to invest, check out this article.
DoFinance's facts & figures
Loans amount financed
As of January 2020
Who can invest at DoFinance
You must be at least 18 years old, have a valid e-mail address, valid documents (passport or identification card) and bank account within the European Union, Switzerland or any other country of the EEZ, which is not included in the lists of high risk and non-cooperative jurisdictions or is not subject of international sanctions. For complete registration you will have to provide a national identification card (scanned or photographed both sides) or passport (scanned or photographed).
Please note that this review may contain affiliate links. It means that I will earn a commission if you decide to invest after clicking through the link – at no additional cost to you, of course -. Please understand that I have experienced all of these companies, and I recommend them because they are helpful and useful, not because of the commissions I make if you decide to invest through my links.