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 9%, depending on the investment duration.
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 !
- The different withdrawal conditions between the offers are confusing
- Interest rates are lower than they used to be
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 an investment duration; the corresponding interest rate is visible in the following screenshot :
DoFinance has updated their offer in spring 2018; the interests rate have been reduced, and the early withdrawal conditions changed. Here’s how they currently work :
- For the 5% offer, you can withdraw your money after waiting 7 days, without any penalty. Interests are paid at investment term.
- For the 7% offer, the interests are not paid monthly; they will be paid at the end of the investment period (or earlier in case of an early withdrawal). The penalty for early withdrawals depends on how much you want to wait. You can choose to wait 30 days and receive only 5% interest, or wait 60 days and receive the original 7% interest rate. Note that for this plan,
- Finally, for the 9% offer, the interests are paid monthly. Should you want to withdraw before the investment term, your money will be locked up for 90 days; during this period, your investment won’t yield any interest
It’s a pity that the different conditions seem to complicate the investment process !
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 many informations, 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 cumulated 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 previous 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 another 6 months.
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.