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
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
- There are too many strategies to choose from
- The different withdrawal conditions between the offers are confusing
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 guaranteeThe loans come with a buyback guarantee; you’ll always get the planned interest rate, no matter how many loans default.
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
English, German, Spanish, Latvian
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 !
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 !
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
DoFinance’s facts and figures
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
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.