Originally written by Timothy Adler on Small Business
Qardus, the first small business Islamic finance platform in the UK, hopes to arrange up to £2.5m worth of funding over the coming year.
The crowdfunding platform, which launched last July, offers sharia-compliant Islamic finance to any small business, whether it is Muslim-owned or not.
Muslim-owned SMEs are an underserved market in Britain, as they are forbidden to borrow money or pay interest under Sharia law yet still need to grow.
>See also: Sharia start-up funding boom as UK leads in Islamic finance
An estimated 3.3m Muslims live in Britain, many of whom need to grow their small businesses but are prohibited under Sharia from borrowing from high street banks. (The word “Sharia” means a well-trodden pathway to water, although in this case it means religious legislation.)
So far, Qardus has arranged nearly £320,000 worth of Islamic finance for five small business owners, including a property firm, a chemist and a dental practice.
Firms can arrange anything between £25,000 and £200,000, which they repay over up to 36 months.
Around 750 individual investors have signed up for the Qardus crowdfunding platform.
Just as Muslim-owned microbusinesses do not really have anywhere to turn for Sharia-compliant finance – most of the big Islamic
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Using Islamic finance for your small business – what is it?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
What is Islamic finance?
Islamic finance is a means of funding or banking money in a way that respects the principles of Sharia law, guided by Islamic economics. In Arabic, Sharia means the clear, well-trodden path to water. The fundamental principle of Islamic finance is to avoid any financial activities which could be deemed either harmful (Haram) or risky for the user.
The main difference between Islamic finance and standard finance is that charging interest in forbidden. Conventional banks and lending facilities earn money by charging fees and monthly interest charges for borrowers.
The principle features of Sharia-compliant finance are:
A ban on what the Koran refers to as “riba” and we would call paying interest
Sharing losses as well as profits
What is Sharia-compliant finance?
Sharia-compliant finance bans excessive risk or uncertainty, as well as restricting any form of gambling or speculation.
Businesses involved in the activities below cannot use Islamic finance:
Alcohol
Gambling
Tobacco
Pork
Entertainment such as music, TV or cinema
Pornography
Arms sales
Do you have to be Muslim to use Islamic finance?
No, you do not have to be Muslim as long as your business is halal (allowed) or promotes a social good.
What kind of small business suits Islamic finance?
Islamic finance dictates that a business
Hot Business News Today
Qardus opens Islamic finance to small business for first time
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Qardus, the first small business Islamic finance platform in the UK, hopes to arrange up to £2.5m worth of funding over the coming year.
The crowdfunding platform, which launched last July, offers sharia-compliant Islamic finance to any small business, whether it is Muslim-owned or not.
Muslim-owned SMEs are an underserved market in Britain, as they are forbidden to borrow money or pay interest under Sharia law yet still need to grow.
>See also: Sharia start-up funding boom as UK leads in Islamic finance
An estimated 3.3m Muslims live in Britain, many of whom need to grow their small businesses but are prohibited under Sharia from borrowing from high street banks. (The word “Sharia” means a well-trodden pathway to water, although in this case it means religious legislation.)
So far, Qardus has arranged nearly £320,000 worth of Islamic finance for five small business owners, including a property firm, a chemist and a dental practice.
Firms can arrange anything between £25,000 and £200,000, which they repay over up to 36 months.
Around 750 individual investors have signed up for the Qardus crowdfunding platform, attracted by projected annual returns of anything between 12 per cent and 16 per cent.
Just as Muslim-owned microbusinesses do