DoFinance review : P2P lending made extra-easy

DoFinance review : P2P lending made extra-easy

DoFinance’s overview

DoFinance provides a rather innovative offer, perfect for those who want an extra-easy P2P investment with a reasonable performance. Interest rates range from 4% to 11%, depending on the investment duration and early withdrawal terms.

My opinion on DoFinance

I must admit that DoFinance‘s simplicity is very appealing. Anyone who had to face Omaraha’s interface will probably fall in love with DoFinance ! Although the offered interest rate may seem to be low, a 9% interest rate for a 6 months investment with zero headache is worth considering. Shorter durations are less interesting though.

Detailed ratings

Interest rates

The interest rates are lower than what you can get from potentially more complex P2P platforms

Loans liquidity

That’s not a concern at DoFinance : just select your plan and never worry about availability again !

Reporting

Who needs reporting when everything is crystal clear from day one ?

Buyback guarantee

Just like availability, this concern disappears.

Website ergonomics

The offer is so simple that it’s hard to think of missing features.

DoFinance’s pros & cons

Pros

  • 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

Cons

  • There are too many strategies to choose from
  • The different withdrawal conditions between the offers are confusing

Loans characteristics

Interest rates

4% – 11%

Loans duration

Less than 1 month

1 month to 1 year

More than 1 year

Loans kind

Individual

Minimal investment

€10

Buyback guarantee

Buyback guarantee available

Currencies

Euro

Available loans : DoFinance has the simplest offer ever

DoFinance is a bit different from the other P2P lending companies. Usually you either select the loans individually, or use the auto-invest feature in order to filter the loans you want to invest in. With DoFinance, you can still select loans individually. However, the interface is clearly designed to make the task painful, and there’s actually no point in doing so.

Indeed, you can instead choose an investment plan where the loans are totally invisible to the investor, making the investment process absolutely trivial. All you have to do is select the desired strategy.

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.

The first strategy, Factoring Auto Invest 4% allows to invest for durations between 4 and 12 months. Early withdrawal is possible, but with a 120 days delay; all accrued interests will be paid.

With Auto Invest 5%, investors can invest for 7 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 9% 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 in in DoFinance’s FAQ.

Buyback guarantee

The loans come with a buyback guarantee; you’ll always get the planned interest rate, no matter how many loans default.

Platform’s features

Secondary market

Secondary market available

Auto-invest

Auto-invest available

Secondary market

There’s no actual secondary market; however you can still withdraw your money early. As noted above, early withdrawal conditions depend on the selected plan.

Website’s ease of use

Languages

English, German, Spanish, Latvian

Funding methods

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. My initial deposit was also processed quickly; overall, creating an account with DoFinance is a very easy task.

Website’s design and ergonomics

The website is available in four languages : English, German, Spanish, Latvian. 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 !

Reporting​

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 !

Investments overview at DoFinance

Actual performance of my DoFinance portfolio

As there’s no concern of default or loans availability, you get what you sign for. No more, no less ! In my case, 12% returns for my initial investments (when the interest rates were higher than currently). My initial investment period of 6 months expired at the end of February 2018. The XIRR computed at this time was 11.95%, which was close enough to my taste. I re-invested the resulting amount – including the interests – for two new 6 months periods, with a lowered interest rate of 9%; the resulting XIRR is now 10.63% as of May 2019.

DoFinance’s main competitors

In a nutshell, DoFinance‘s interest rates are higher than Ekassa‘s for some strategies; however, DoFinance’s offer is much harder to understand.

Readers interested in a detailed comparison between DoFinance and their competitors (Ekassa, Mintos predefined strategies and Bondora’s Go & Grow) can refer to our article on one-click-investing.

DoFinance’s facts and figures

Location

Riga, Latvia

As of November 2018

Who can invest

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.
Dofinance’s website

Disclosure

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.

10 thoughts on “DoFinance review : P2P lending made extra-easy”

  1. Love the reviews of the different platforms. One thing I find really annoying as a UK investor is P2P companies who do not appear to accept Transferwise payments (or at least make no mention of the function) as it is very difficult in the UK to make payments abroad online – in my case I have to call my bank each time I wish to do this (and get charged for it).

    • Hi John,

      I’m glad you find the reviews helpful. I was actually wondering about the point of having alternative means of funding accounts; your comment just gave me one excellent reason to use them !

  2. I’m finding it very annoying 🙁 I would like to invest small amounts (let’s say £50) in a spread of P2P platforms just to get a feel of each before investing further, but to do this from a UK account involves calling the bank, paying a £20 fee plus their conversion fees.
    I emailed Peerberry to ask if they accept TW payments but the whole process is far more complicated than it should be. I would need to send Peerberry ‘additional documents’ or, if I have a borderless account, a screenshot showing my account details. Not sure why they can’t make it simple, Mintos works fine with TW.

  3. HELLO dofinance offers investments in Indonesia up to 12% with a one-year bond (guaranteed) or 11% in Indonesia with an 8-month limit (guaranteed). It looks great.

    • Thanks for pointing that out ! I actually noticed the new strategy 2 months ago but never took the time to look it up. Your comment motivated me to do so and update the review accordingly 🙂

      It’s too bad that there are so many available strategies; this is quite confusing for an offer that would otherwise be perfect for beginner investors ! However, for investors who are sure that they won’t need their money early, the new 11% strategy is an excellent choice.

      Have a great day !

  4. Hei Jerome,

    I’m a bit confused with the term of the investments. What is the average length you lend for? I cannot see what is more profitable:
    a) Investment in a 60 month credit
    b) Invest in a 6month credit. Reinvest the principal and the interests in a new 6month credit. Like this for 10 times
    (assuming all have the same %interest, lest say 11%)

    I’m open to see some math if you have the time.
    Thanks

    • Hi Joan,

      Hmm, actually this depends on how you think the interest rates may vary in the future. If you think they may increase, it’s better to invest for a short duration; then, if you’re right, after 6 months you can re-invest with higher rates.

      As a concrete example, when I started investing, DoFinance’s loans offered 12% interest rates. I invested for only 6 months, and after my initial 6 months period was over, their offer had changed and yielded only 9% when I re-invested. In this case, it would have been better to invest for much longer !

      Right now, the 11% rate seems rather competitive, and I doubt they can push it much further; however, things may change quickly in the P2P world, so who knows what the future can bring ? Just look at the outcry after Mintos lowered their interest rates last summer, and now they’re basically higher than ever !

      I hope this helps.

      Jérôme

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