Whether you’re a new P2P investor or you have years of experience with P2P lending platforms in Europe, you may be wondering if Do Finance is a good place to invest your hard-earned money. In this Do Finance review, we’ll take a look at the basics of this platform and its features, loan options and more. Let’s get started now.
What Is Do Finance? The History & Basics Of The Platform
Do Finance is based in Latvia, and it was first founded in 2017. This makes it one of the newer P2P lending platforms out there. It accepts deposits and issues loans exclusively in EUR, but it’s open to the European Union, Switzerland, and every other country in the European Economic Zone (EEZ).
It focuses primarily on consumer loans in multiple countries including Poland and Latvia, and it works with a network of third-party loan originators to issue its loans. In total, it has issued loans exceeding €58,000,000, with more than 3,500 investors using the platform.
Returns at Do Finance: Okay returns with reasonable risk
At Do Finance, the average yearly return rate for investors varies between 4%-11%. This is not the highest rate offered by EU P2P lending platforms, but it’s pretty reasonable. You can choose your level of risk and return using auto-invest features, or by investing manually.
Each loan is individually vetted and evaluated by a third party loan originator before it is added to the Do Finance marketplace. Before you invest, you can view the details about each loan to make sure it meets your investment criteria.
Loan diversification at Do Finance: Plenty of loans available
Do Finance offers a wide variety of loans. Most of its loans are in Poland and Latvia, but it works with a variety of third-party loan originators. The loan terms vary quite a bit, too. Some loans are issued for terms as short as 7 days. Others offer loan terms of up to a total of 5 years.
Despite the fact that it only offers consumer loans, this makes it easy for you to build a balanced loan portfolio using Do Finance. Whether you prefer to manually invest or use its auto-invest feature, you can balance short and long-term loans, and your risk vs. reward.
Do Finance features: All the bells & whistles
You’ll have plenty of great features to use when you choose Do Finance. It has a unique autoinvest feature which lets you choose your preferred interest rate; 4%, 5%, 7%, and 9%. While you can pick and choose your own loans, these products make it easy to build a diversified portfolio. However, it doesn’t automatically reinvest your interest. You can get started with just €10.
You also have access to a secondary market where you can buy and sell your investments. Most Do Finance loans are also protected by a buyback guarantee, which protects your loans and refunds your initial investment if the loan is more than 30-90 days late.
Do Finance user experience: Easy to use with appealing design
The Do Finance user experience is pretty good. We had an easy time signing up for an account and transferring money, and you can quickly browse available loans to choose the ones in which you’d like to invest.
We had no major performance issues, and plenty of charts and graphs made it easy for us to track our investments. Whether you’re a new investor or you have a lot of experience with P2P investing, Do Finance makes it easy to view your performance and manage your portfolio.
Should I use Do Finance? Risks & recommendations
The primary risk of using any P2P lending platform is that the borrower may fail to repay their loan. This is not a major concern with Do Finance, because your loan will be protected by a buyback guarantee.
The other major risk is that Do Finance could go out of business. Again, this is not much of an issue because, unlike some other P2P lending platforms in Europe, Do Finance works with third-party loan originators. Even if it goes out of business, your investments will not go anywhere. If you want to build a balanced portfolio in Europe, the Do Finance P2P lending platform is a great choice.