I started using it in March 2018. DoFinance is characterized for being by far the simplest platform in which to invest. It offers already pre-configured AutoInvest portfolios, but profitability is not very attractive. You choose the amount to invest, the interest (5, 7 or 9%) and the term… and you forget about it. When I opened my account, the platform also offered 12% loans that disappeared throughout the summer of 2018. I really hope they come back, because with them, DoFinance was one of the most attractive platforms, adding considerable and constant returns to its incredible simplicity.
DoFinance in numbers: At the end of 2018, there were 3,514 registered customers, 40% of German investors, followed by Spain (22%), Italy (11%) and the Netherlands (10%). The average investment amount was 2,695 euros for an average investment term of 6,8 months, with 9% automatic investment as the most popular investment program.
- Platform Type: Crowdlending to individuals (P2P), with loans generating from the parent company Alfa Finance Group.
- Start: 2015.
- Modalities: The most usual with DoFinance, and this is a big difference with other platforms, it that you invest in a portfolio at the fixed rate and term that you choose. There is also the possibility to choose loan by loan manually, but frankly I have not tried it.
- Geographic focus: Latvia, Poland, Georgia and Indonesia.
- Currencies: EUR.
- Return rates: DoFinance offers already preconfigured AutoInvest portfolios, but the profitability is not very attractive. You decide the term and the interest you want to invest in (5, 7 or 9%). The interest rates are linked to the terms and the possibility of recovering the money before term with greater or lesser penalty. Thus, at a lower interest rate, you can choose shorter terms (less than one month) and claim your money without any penalty. As the interest rate increases, so do the terms and penalties for early cancellation.
- Investment flow / Cash Drag: No problem.
- Minimum investment (per loan): From 10 EUR.
- Payment modality: At the end of the term.
- Duration of loans: 7 days to 60 months. With longer-term, higher returns.
- Defaults: All loans are secured (Buyback).
- Buyback: Yes, all.
- AutoInvest: It is the platform that requires less maintenance by far. I only check it once a month. That is, if you choose your portfolio composition solely on the basis of the interest rate and term. The country of origin or any other loans’ characteristics cannot be chosen.
- Secondary market: Does not exist. If you want to get rid of your investment, DoFinance gives you the flexibility to do so in a few weeks. With a penalty though.
- Interface / Tools: The platform is so simple to operate that does not need many tools. You can check the transactions (and download them in Excel or PDF), check the present and future profits (i.e. at the end of the chosen term). There is also a simple calculator available that indicates the profits to be generated depending on the package (term and interest rate) that you choose.
- Taxes: It doesn’t withhold taxes.
- Customer Support: Operation platform and interface are so simple that I haven’t really needed to contact them.
- Languages: Spanish, English, German and Latvian.
- Welcome promotion: 10% (instead of 9%) during the first 90 days (10% VIP status) using this link. That is, a 1% extra profit for the first three months.