Due to high incoming queries, we have created answers to the most commonly raised concerns and updated our FAQ sheet, please see here.
What is the current situation with DoFinance?
DoFinance continues to operate as a P2P platform by matching our Investors invested funds with borrowers – private individuals in Poland and Indonesia.
Currently, Loan originators and DoFinance are implementing a business stabilization plan as intended and are working on investor funds gradual repayment plan preparation according to receiving repayments from borrowers.
Business stabilization plan intends several actions:
- to decrease substantial funds pay-out;
- re-build customer scoring models to keep borrower default risk at a proper level;
- activities to establish and secure new financial sources for business operations.
We will keep all our investors in close information loop about the progress.
What is Alfa Finance group plan to overcome the crisis?
This is the most challenging time for the financial industry and the global economy since 2008. Even the most cautious players haven’t been for 100% prepared for such a scenario.
These days weighted, fast and sometimes tough decisions have to be made. Alfa Finance group has executed and is executing numerous activities to stabilize business today and in the long-run. Solidarity among investors in a priority for us. We work hard so that first investors in line will receive money as well as the last ones.
Main activities DoFinance and Loan originators’ teams are working currently on are:
- stopped intensive funds pay-out from p2p platform to normalize Loan originators’ cash flow;
- re-built customer scoring models to keep borrower default risk at a proper level;
- audited Loan originators’ operations to improve daily operations cost efficiency;
- working on adding several new sources of funds to facilitate an uninterrupted operation of Alfa Finance main business;
- investor funds gradual repayment program preparation where funds will be repaid according to received repayments from borrowers;
- And last but not least – despite the crisis, DoFinance continues the preparation process to obtain Investment Brokerage Firm (hereinafter – IBF) license supervised by the Financial and Capital Market Commission (FCMC, Latvia).
My investment period ended in 12.03. – 27.03. and investment status is “Completed”. I asked for a pay-out but haven’t received it.
Due to unexpected high volume of buyback requests and simultaneous worsening of the economic environment (due to COVID), from the 12th of March, Loan originators discontinued the use of repurchase rights (100% BuyBack).
As changes in BuyBack were not pre-built in the DoFinance reporting system, the system treated these investments the same way as before. All investments with a due date 12.03.2020. – 27.03.2020. were assigned status “Completed” and funds were moved to Investors virtual account as “Available amount”. At the same time buyback rights were not executed anymore. Subsequently, no actual payments were received from Loan Originators.
After full acknowledgment of the situation, on 27.03.2020., DoFinance stopped assigning investments as “Completed” and stopped transferring investment amounts to Investor virtual accounts as “Available amount”.
Within the next 10 working days, our IT team will fix the situation and will revert transactions to its actual status. All invested amounts will be shown as “closed” and each investment will show its separate underlying cessions according to their statuses as of the moment of Investment due date: “Paid”, “Actual”, “Delayed”, “In transfer.”
Upon receiving “Paid” amounts from Loan Originators, DoFinance will increase the Investor account “Available amount” by the respective amount.
As a result, once the Investor will request a pay-out, the payout will be processed accordingly.
My investment period ended after 28.03. Investment status is “Closed” but funds are not available as “Available funds”. What does it mean?
Your Auto Invest program has ended after 28.03.2020., but as of 12.03.2020. Loan originators are not using BuyBack rights. Therefore investment program is “Closed” (reached program end-date), but invested funds are not transferred to “Available funds”.
There are loans with different repayment dates in your Auto Invest program which means part of loans are not repaid yet. These loans will be paid by respective borrowers according to their repayment dates or extended according to the loan agreement conditions. Therefore the system treats your investments as active and all investments are still under My investment programs. Our IT team is fixing investors’ reporting system to display “Closed” investment programs accurately.
Upon receiving amounts for repaid loans from Loan Originators, DoFinance will increase the Investor account “Available amount” by the respective amount. As a result, once the Investor will request a pay-out, the pay-out will be processed accordingly.
All of my investment programs have finished and I have requested some amounts to be paid out, when can I expect to receive the money?
It depends on your investment end date.
If investment ended before 12.03. , when Loan Originators applied 100% BuyBack, then it will be paid as soon as we receive the next payment from Loan Originators to cover amounts that DoFinance already has paid out to investors for investment buyback.
If investment ended after 12.03. please read the answer to the question “My investment period ended in 12.03. – 27.03. and investment status is “Completed”. I asked for a pay-out but haven’t received it”.
My investment program has not yet ended. What is the risk of my capital being lost?
All investments contain certain cession amounts of loans issued to private individuals. The issued loans have repayment schedules in which borrowers are supposed to repay loans. The payment discipline has not changed much until March. Nevertheless, the time period in which we all are now operating is very challenging. People around the world and as well in Loan Originators’ home countries are facing different restrictions. That can cause an inability to work, receive sufficient income to cover liabilities in time.
Still, we assume that any difficulties will end at some time. And our borrowers are private individuals that will have the liability to repay their borrowings once the financial situation will improve. Loan Originators will continue to enforce the collection of debts and investors will receive their payments accordingly.
I have requested to pay-out only my earned profits from my investments. Will this be paid out? When?
Yes! We have had little delays with pay-out requests due to recent disbalance of incoming and outgoing cash flow. Part of these pay-outs is already settled. Others we will process in the upcoming days!
Where is an option for Investment program early termination?
Please send e-mail to firstname.lastname@example.org indicating your investor number, as well as a number, program and amount of investments you want to be stopped. DoFinance will activate early termination according to the program.
We hope that these answers shall clear most of the concerns all our investors are having at the moment. Nevertheless, we will continuously keep everyone updated and informed of the situation and further developments.