Overview of DoFinance
DoFinance has been around for some time. I actually opened an account with them earlier but never funded it. As I was searching for some further diversification for my P2P lending portfolio, I decided to give this company a try.
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.
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 for following screenshot :
Note that the early withdrawal conditions also vary with the interest rate; if you choose the highest-yielding offer, you won’t get any interest if you need the money before the term !
Another difference with other companies is that the interests aren’t credited gradually. You’ll see the current value of your portfolio in the portfolio summary, but the interest will be available at the same time as the principal, at the end of the investment term.
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.
The loans come with a buyback guarantee; you’ll always get the planned interest rate, no matter how many loans default.
As you don’t see the loans you invest into, there’s no secondary market. However, as noted above, you may withdraw your money early, with consequences depending on the selected plan.
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 ! The website is available in four languages : English, German, Spanish, Latvian.
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 DoFinance
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.
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.
Conclusion : DoFinance is the easiest way to invest in P2P loans
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 is lower than at Grupeer, a 12% interest rate for a 6 months investment with zero headache is worth considering. Shorter durations are less interesting though.
|Interest rate||Interest rates for durations above 6 months are interesting, those for shorter durations not so much|
|Loans availability||That’s not a concern at DoFinance : just select your plan and never worry about availability again !|
|Buyback||Just like availability, this concern disappears|
|Website ergonomy||The offer is so simple that it’s hard to think of missing features|
|Reporting||I really feel I’m repeating myself, so : who needs reporting when everything is crystal clear from day one ?|
|Global rating||A rather innovative offer, perfect for those who want an extra-easy P2P investment with a reasonable performance|
(last update : February 28th, 2018)