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Funding FAQs

1. What fees does Qardus charge?

   We charge an arrangement fee ranging from 5% to 7% that is paid by the small business seeking financing on drawdown of the funds. In practice, it will be retained from the advance. 

2. Are there any additional costs that could apply to your financing facility?

   An administration fee of 15% of arrears may be applied to any repayments that are more than 7 days late.
   If your facility is placed into default, we may charge an additional collections charge of up to 15% of the outstanding financing amount at the time of default. 

3. Who can apply for a financing facility?

   All UK registered business can apply for financing on the Qardus platform. Businesses must be:
   

   1. Limited Liability Company with UK registered shareholders
   2. Minimum of 3 years' trading history (start up's are not eligible)
   3. No outstanding CCJ's
   4. Stable cash flows

   
   
As Qardus is a sharia-compliant platform, businesses with their main activities in the following sectors are excluded:
   
   

   • Advertising if: 

   • Advertisers of pork, alcohol, gambling, tobacco and all other non-Islamic activities 

   • Advertising means and modes which contravene the tenets of Islam

   • Media & Entertainment (Exceptions that are allowed on the platform include: News Channels, Newspapers, Sports Channels, Children’s Channels, Educational Channels):

   • Producers, distributors and broadcasters of music, movies, television shows and musical radio shows

   •   Cinema operators

   • Alcohol

   • Cloning

   • Financials, except the following that are allowed:

   • Islamic Banks

   • Islamic Financial Institutions

   • Islamic Insurance Companies

   •  Gambling

   • Pork

   • Pornography

   • Tobacco

   • Trading of gold and silver as cash on deferred basis

4. How quickly can my business get financing?

   Your application to obtain funding on the Qardus platform can take minutes to complete. Once this is done, our credit assessment team will review your complete application and get back to you within 48 hours (2 working days).If your application is approved, you have agreed to your financing agreement and have set up your Direct Debit, your financing request will automatically be listed on the marketplace so that registered Qardus investors can review it and offer to fund your business.  Your financing facility can fund over a period of up to 14 days, although most financing arrangements fund in just a few days. As soon as it's 100% funded your listing will close and we will send you a confirmation email. As long as your financing facility is fully funded before 3pm on any working day, we will transfer the funds into your designated business bank account the same day. (NB: Funds can take up to 3 days to reach your account).

5. What rate will my business pay?

   The total cost of your financing facility includes the rate you pay to investors, and Qardus fees. The rate (i.e. profit rate) your business pays back is determined by a number of factors, including the risk band your financing facility is given during our credit assessment process, and the length of repayment term. Your facility will be allocated a risk band once you have submitted your complete application to obtain funding on the Qardus platform. 

6. What types of financing can a business get on the Qardus platform?

   Qardus currently provides the following type of financing: 

   • Small business financing facility

   • Up to £200,000 for working capital purposes

   • Tenors from 6 months to 36 months

   • Monthly repayments back to investors

   • Unsecured financing facilities (will typically require shareholder guarantees), all asset secured, specific asset secured

7. Secured vs. Unsecured business loans

   Unsecured business loans typically include a personal guarantee. A personal guarantee (when referring to unsecured loans) is a type of unsecured loan agreement.

   Unlike a secured loan agreement, an unsecured loan does not obligate the business receiving the loan to give up collateral (business assets) if the business defaults on payment.

   The lender may still be able to take your collateral, but not without a court’s permission. It is typical for non-Sharia-compliant businesses to charge a higher interest rate for unsecured loans; whereas secured loans have lower interest rates.