Qardus review: Sharia-compliant business finance for UK SMEs

Qardus is a UK finance platform set up to give small and medium-sized businesses access to Islamic, Sharia-compliant funding. Its business finance is interest-free: rather than paying interest on money borrowed, the business pays a pre-agreed profit and fee that are fixed at the outset. Qardus is one of the finance providers on our panel, and as an independent broker we can help you understand how its offer compares with other options, including other Sharia-compliant routes. You can read more on Qardus's own website.

01About Qardus

Qardus was developed through the Founders Factory accelerator by a founder with an academic background in Islamic finance. It describes itself as aiming to close the funding gap for SMEs, so that business owners can raise capital without compromising their ethical or religious values.

Qardus runs two sides: a business finance service for UK companies, and an investing service through which individuals can fund that finance and earn Sharia-compliant returns. Its operations are overseen by an independent Sharia board, and it publishes a Sharia compliance certificate on its website.

Smart Funding Solutions is an independent broker and is not part of Qardus.

02How Qardus finance works in plain English

Islamic finance avoids interest, known as riba. So instead of lending money and charging interest on it, a Sharia-compliant provider takes part in a real trade. Qardus has described using murabaha, a cost-plus sale, which works roughly like this:

1. A Qardus company buys a quantity of an everyday commodity, such as a base metal, at its market price.
2. It sells that commodity to your business at a higher price, with the markup agreed upfront. That markup is Qardus's profit.
3. The commodity is then sold on your behalf, and the cash proceeds are paid to your business.
4. Your business pays the agreed sale price back to Qardus in instalments over the term.

The practical result is similar to term funding: you receive cash now and pay a fixed total over time. The key differences are that the profit is set at the start and does not change, and the transaction is built on a genuine sale rather than on interest. Our guide to Islamic business finance in the UK explains murabaha and other structures in more detail.

03What Qardus funds

Qardus offers two business finance options on its website:

Option	Amount	Term	Notes
Unsecured finance	£25,000 to £90,000	6 to 24 months	No asset security; based on the strength of the business
Secured finance	£100,000 to £500,000	Up to 36 months	Uses existing business assets as security

The finance can be used for general business purposes such as working capital, stock, equipment or growth projects, as long as the business itself operates in a permitted sector.

04Who Qardus suits (and who it may not)

Qardus publishes clear eligibility criteria. Your business must:

• Be a UK registered limited company or LLP.
• Have at least £100,000 in annual turnover.
• Have been trading for at least 24 months.
• Be profitable, with stable cash flow.
• Have no outstanding County Court Judgments.
• Operate in a Sharia-compliant sector, which excludes areas such as gambling, alcohol, tobacco and conventional finance.

That makes it a good fit for established Muslim-owned businesses, and for any owner who prefers an ethical, interest-free structure. It is less likely to suit sole traders, start-ups, loss-making companies, or businesses in excluded sectors.

05What Qardus looks at

Qardus describes a four-step process: apply online, an in-house review with a soft credit check that it says does not affect your score, a decision that it aims to make within 48 hours, and funding typically within two working days. To support an application you should typically expect to provide:

• Recent business bank statements.
• Filed accounts and, ideally, up-to-date management accounts.
• Details of the company's directors and shareholders.
• A short explanation of what the funds are for.
• For secured finance, details of the assets being offered.

That makes it a good fit for established Muslim-owned businesses, and for any owner who prefers an ethical, interest-free structure.

06Pros and cons

Pros

• Sharia-compliant, with independent Sharia board oversight.
• Profit and fees are agreed upfront, so you know the total cost.
• Fast decision and funding timescales, according to Qardus.
• Both unsecured and secured options.
• Suits owners who want an ethical, interest-free structure for any reason.

Cons

• Limited companies and LLPs only, with two years of trading and profitability required.
• Terms are relatively short, up to 36 months.
• Businesses in excluded sectors cannot apply.
• Fewer Sharia-compliant providers exist, so there is less to compare against.

07Applying through a broker vs going direct

You can apply to Qardus directly online. Comparing first helps because the Sharia-compliant market is small and each provider structures things a little differently. If compliance is essential for you, we can tell you which routes are realistic for your amount and sector. If it is a preference rather than a requirement, we can also show you how conventional options compare, so you make an informed choice.

We search the market across our panel of 300+ lenders, present your case clearly and approach the providers that fit. It is free to enquire; any broker fee is disclosed separately before you proceed. Use our Instant Quotes tool to compare lenders in minutes.

08Alternatives to Qardus

There are few Sharia-compliant business finance providers in the UK, so the right alternative depends on whether compliance is essential:

• For property purchases, ask us about Sharia-compliant commercial property finance, which some specialist banks offer through lease or partnership structures.
• For equipment, hire structures can sometimes be arranged in a compliant way. Our asset finance page explains how they work.
• If compliance is not essential, Fleximize offers secured and unsecured business funding, and Allica Bank is worth comparing for established SMEs.