Frequently Asked Questions
Is funding only available to Muslims?
Absolutely not. Funding is available to all.
What is the term and can I make an early repayment?
The investment period is up to five years. There are NO fees or charges for early repayments and the requirement for you to pay us any amount or share of profits will cease when the capital is repaid or the Mudarabah will be deemed terminated.
Will a poor credit record affect my chances of securing investment?
It depends on the definition of ‘poor’. If you are currently bankrupt, or in an Individual Voluntary Arrangement (IVA) or debt management programme, we will probably not be able to invest. In other cases we will try and help, so if you have issues with your credit, please discuss them with us.
How much finance can you provide?
We will try and invest as much as your business requires, but as Financing Sharia Enterprise is funded by the government, there is a finite limit on the amount of funding available. The absolute limits on funding are £25,000 per individual and £100,000 for the company into which the investment is made. The average investment is around £8,000 to £12,000,
Do I need to have a contribution in the business?
It is not compulsory, but if your financial projections do show a contribution from you, we will need proof that this is available.
How long will it take to secure the investment?
This will depend on how far you are with your plans, and how quickly you can respond to our requests for information. For our part, we will turn your case round as quickly as we possibly can. As all applications are considered by our Sharia Advisor, the process is slightly longer than for mainstream loans.
Can I apply with a business partner?
Certainly. This will usually allow us to invest a higher amount than in the case of a sole trader. Our experienced staff will assess each applicant’s financial status and ability to meet the terms and conditions of the investment agreement.
Are there any special requirements regarding other money invested?
Yes, we will need to know the source of any other money, and on what terms it is made available. We are not able to invest in cases where interest-bearing loans have been used to part-finance the business.
Got more questions?
Feel free to reach out.