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DoFinance Review


rating

Earn on average 8% interest per year.
Your investment is secured by a buyback guarantee.


Highlights

  • Longer loan term increases your interest
  • Minimum investment only €10
  • Predefined Auto Invest
  • Access your money in 7 to 90 days

Rating

Risk & Return4 stars
Usability3.5 stars
Liquidity3 stars
Support4 stars

FEATURES


Buyback GuaranteeYes
Auto InvestYes
Secondary MarketNo
CashbackYes
PromotionsYes

DIVERSIFICATION


Min. Investment€ 10
Countries3
Loan Originators1
Currencies1
Loan Period6 - 60 months
Interest5% - 12%

PROS & CONS


  • Instant buyback guarantee
  • Intuitive navigation
  • 1% DoFinance bonus
  • Limited diversification
  • Lower returns
  • No instant withdrawals

doFinance Review

doFinance is a subsidiary company of the Latvian Alfa Finance Group. The peer-to-peer (P2P) platform provides financing for loan originators from Latvia, Poland, and Indonesia that are operated by Alfa Finance Group. doFinance lists short-term loans with an interest of 5-11% protected by an instant buyback guarantee.

Keep reading this doFinance review to learn everything you need to know about this P2P platform.

dofinance review

doFinance in Numbers

Before signing up to any P2P lending platforms, you should always have a look at their statistics.

We always hope that lending platforms will be transparent with their numbers. When looking for doFinance stats, we mostly found data connected to the Alfa Finance Group, and these numbers weren’t as transparent as we’d hoped.

After being unable to find the information online, we reached out to doFinance’s support team. Luckily the team was very responsive - providing us with all the requested information.

See the table below for the P2P lending platform’s stats:

doFinance Statistics
Year founded:2017
Investor's earnings:-
Total loan value:+ €86.6 M
Amount of investors:+4,800
Loss of investors' money:0%
Average portfolio size:€4,159
Latest financial reportReports for Q1,Q2

You only need to briefly look at the data to see that the platform cannot be compared with giants such as Bondora or Mintos.

But, you also only need to glance at the table to see that, to this date, no investors have lost any money while investing in loans listed on doFinance. This impressive stat is a result of the platform’s protection scheme: an efficient buyback guarantee.

The P2P lending site is also very transparent with their financial results; not every platform shares this data publicly.

doFinance Referral Code and Bonus

doFinance doesn’t offer sign-up bonuses, however, the platform does reward loyal investors with the so-called VIP-doFinance Bonus.

If you sign up with our referral link, you’ll be eligible to receive a 1% additional bonus on your interest after 90 days of registration. This means that if you set up your Auto Invest to invest in loans with 11% interest, you will get a 1% bonus after 90 days.

When compared to other P2P lending platforms that offer promo codes for new investors with an additional 0.5% bonus, doFinance’s offer looks more than competitive.

Please do note that this doFinance bonus is only for investors who sign up using our link.

Use the referral link to claim your bonus.

dofinance referral code

Ready to doFinance?

doFinance New User Requirements

In order to sign up on the doFinance platform, you need to be over 18 years old and reside in any country within the European Economic Area.

During registration, you will need to provide a copy of your ID or passport as well as verifying your email address. You will also be asked to fill in the Know Your Customer questionnaire with your personal data. In the last stage of profile verification, you will need to take a selfie with your ID.

Unfortunately, there is no way to take this photo straight from the browser. Instead, you’ll need to take it on your mobile/computer and upload it from there.

At the moment, you can only transfer funds from a private bank account that’s registered in your name. The transaction can take up to two days, however, in our case it took three days with the N26 bank.

doFinance also supports receiving funds via TransferWise, however, you’ll need to transfer money from your own account first. Revolut is also one of our preferred methods when depositing money to our doFinance account.

dofinance deposit funds

Risk and Returns Involved with doFinance

In order to evaluate the risks and returns involved with investing in P2P loans, you should first look at the type of loans listed on the platform. While some platforms (like Mintos or Bondora) list a broad variety of loans, other platforms (like EstateGuru or Crowdestate) focus on a certain type of loan, for example real estate ones.

Similarly to PeerBerry, Twino, Robocash and many other P2P lending platforms, doFinance lists unsecured short-term loans. These are protected by a buyback guarantee which is superior to any other buyback guarantees we’ve come across when reviewing and testing P2P lending platforms.

doFinance’s Instant Buyback Guarantee

As soon as the loan is delayed, the loan originator purchases back the claim. That means that investors receive the full investment amount together with accrued interest. Better still, doFinance’s buyback interest kicks in right after the loan period.

This isn’t the case with most other platforms, which offer a buyback guarantee that kicks in after 30 or 60 days. In fact, some of the loan originators on Mintos don’t even pay the interest for delayed loans, which lowers your returns.

Is doFinance Safe?

Transparency within the P2P lending industry is becoming increasingly more important. That’s why we encourage every reader to complete their own due diligence before signing up with any P2P lending platforms.

We at P2P Empire, we aim to provide the best value. That’s why we spend hours testing and researching every single platform. Here are a few hints that might help you to decide whether doFinance is the right fit for you.

Who Leads the Team?

Janis Kulkovskis is the Founder of the Alfa Finance group, which owns doFinance. Co-founded by Janis and Viesturs Kulikovskis in 2015, Ingar Zagorskis joined the doFinance family as the CEO in 2017.

  • Janis was active in the manufacturing and trading business for over 16 years. According to his LinkedIn profile, Janis is the partner of L.J.Linen Ltd which lists their invoices on doFinance.
  • Viestrus was previously active within the hotel investment sector for over 17 years.
  • Ingars worked several years for the European payday loan company 4Finance.
dofinance lj linen

We have not found any suspicious information about the founders or influential people involved with doFinance.

Who Owns the Company?

doFinance is operated by Alfa Finance Group, which helps fund the self-originated loans that are listed on doFinance.

Alfa Finance operates three loan originators that lend money to borrowers from Poland and Indonesia. These are the Indonesian Kredit Cepat, the Polish Tani Kredyt and Opoqa Finance from the same country.

All three lending companies offer loans for a duration of 30 days and interest between 600% and 2000% per year, which is common practise within the payday loan industry.

Investors earn on average 10.58% per year.

Where is the doFinance Based?

The company’s office can be found under this address: Riga, Antonijas Street 5, LV-1010. The address corresponds with the information on doFinance’s website as well as the data on theLatvian business registry. If you ever walk by the office, you can see the Alfa Finance logo on the right sight of the entrance.

Are There any Recent Changes to the Management?

We have not found any information about recent changes in the leadership of the company. The co-founders are still very active in the company's daily operations.

Do Investors have Access to Individual Loan Agreements?

Unfortunately, we haven’t found any individual loan agreements between investors and borrowers.

To What Extent can doFinance Cover the Early Buyback?

We’re not sure that the platform could cover all the withdrawal requests. However, because the platform’s listed loans are mostly short-term, we don’t expect it will face much of a liquidity problem.

Can doFinance Provide a Financial Report?

Unfortunately, doFinance does not provide a report for its operations, we could only find the Alfa Finance Group report on doFinance’s website.

Are the Loans Secured by any Collateral?

When investing on doFinance, you are funding unsecured personal loans.

doFinance is a promising P2P lending platform that lists unsecured personal loans. Until now, the investors on this platform haven’t lost any money as the loan originators are always able to buy back the claims in cases where payment is delayed. Past performance is, however, no guarantee for future outcomes. The only way you can lower your risk is to diversify your P2P lending portfolio.

doFinance’s Usability

The doFinance platform was made for investors that don’t mind giving away the control of the portfolio’s diversification, and as a result it does not offer many distinctive features. There is, however, an Auto Invest feature that will help you define your strategy and automate your investments.

Auto Invest

doFinance’s Auto Invest tool gives you three different predefined strategies to choose from. All the loans are secured by the buyback guarantee.

  • 5% interest with a loan period from 7-365 days
  • 7% interest with a loan period from 2-60 months
  • 9% interest with a loan period from 6-60 months
  • 11% interest with a loan period from 6-60 months

dofinance autoinvest

So, how does it work?

After choosing one of the strategies above you can define the portfolio amount as well as the duration of the Auto Invest strategy. During this time, the Auto Invest will reinvest your accrued interest. From our point of view, there is no logical reason to invest in any of the first three predefined Auto Invest strategies unless the priority is to keep your portfolio as liquid as possible. Meaning you can withdraw money within seven days after your request.

After choosing one of the strategies above you can define the portfolio amount as well as the duration of the Auto Invest strategy. During this time, the Auto Invest will reinvest your accrued interest. From our point of view, there is no logical reason to invest in any of the first three predefined Auto Invest strategies unless the priority is to keep your portfolio as liquid as possible. Meaning you can withdraw money within seven days after your request.

When compared with similar features on other platforms, doFinance’s Auto Invest tool is not our favorite. Most P2P lending sites let you define your preferred investment amount per loan, while doFinance splits your portfolio automatically in €10 to €20 investments.

Manual Investing on doFinance

doFinance also gives you the option to invest in loans manually, however, we don’t see the need for this as there is no real benefit to investors spending their time hand-picking payday loans.

dofinance loans

As a result of the lack of information about borrowers and no collateral, it doesn't make sense to invest manually. Unless, of course, you want to avoid investing in loans from a certain loan originator. If this is the case, we suggest investing elsewhere as all loan originators on doFinance belong to the same Alfa Finance Group.

Liquidity of Your Investments

If liquidity is a priority for you, we suggest sticking with the Auto Invest tool because, when investing manually, you cannot withdraw your money before the end of the loan period.

Depending on your Auto Invest strategy, you can withdraw your investments after seven days, 30 days or 60 days.

  • 5% plan = cash out in seven days with interest
  • 7% plan = cash out in 30 days with 5% interest or 60 days with 7% interest

dofinance withdrawal

doFinance doesn’t make it easy for investors to withdraw their investments, even though they mention several times throughout the website that investors have easy access to money.

If liquidity is a huge factor for you, we suggest using Bondora’s Go and Grow as this allows you to instantly withdraw all of your investments. Alternatively, Mintos’s Invest and Access feature has up to 75% instant withdrawals.

As you might have noticed, there is no secondary market on doFinance as there isn’t really a need for it with the instant buyback guarantee.

doFinance’s Customer Support

doFinance offers a live chat function where you can submit your requests. The response time of the support team might vary. DoInvest was very fast when answering simple questions. The platform, however, did not provide any information we have requested about their financial reports, during our due diligence research. There is certainly room for improvement when it comes to the transparency of their operations.

doFinance Review Summary

Unrivaled Buyback Guarantee

doFinance is a promising platform with a rock-solid buyback guarantee. In fact, it’s the best buyback guarantee you will get from a European P2P lending platform at the moment.

Liquidity

On the other hand, the ratio between the returns and liquidity isn’t as optimal. Depending on your investment strategy, you can earn as low as 5% interest per year if you decide you want to withdraw your money instantly.

Interest

If you are using doFinance for long-term investments you can earn up to 12% per year, which isn’t bad when compared to other P2P lending sites.

Alternative Platforms

If you want to invest short-term, your best bet in terms of the ratio between liquidity and returns is either Mintos Invest and Access or PeerBerry.

In case you decide to give doFinance a shot, make sure to use our referral link to get a 1% bonus on your investment after 90 days of your registration.

Does that sound good to you?

FAQs

Is doFinance safe to use?

doFinance is as safe as any other P2P lending platforms that offer short-term loans with high interest rates and a buyback guarantee. The Alfa Finance Group takes responsibility for the risk assessment of borrowers which isn’t always the case as some P2P lending platforms outsource their risk assessment.

Why invest on doFinance?

Returns up to 11% per year and an instant buyback guarantee are two reasons why you should consider investing on doFinance. doFinance is a suitable alternative to Mintos, Bondora or any other P2P lending platforms that list short-term investment opportunities.

Does doFinance offer a buyback guarantee?

doFinance offers a unique instant buyback guarantee that most other P2P lending platforms cannot beat. Your loans never get delayed because the buyback guarantee activates right after the end of the loan period.

What are doFinance’s VIP Investors?

doFinance VIP Investors are those who signed up to the platform with our referral link. These users are eligible to receive 1% additional interest on their 11% automated portfolio strategy after 90 days of registration.

Company Information
Company:DoFinance
Address:Antonijas iela 5, Riga, Latvia
Phone:+371 676 303 63
Email:info@dofinance.eu
Live Chat:Yes
Opening Hours:Weekdays from 9PM to 5PM
Social Media:Facebook