HalalWallet (halalwallet.co.uk) compares Shariah-compliant business financing in the UK, from Qardus's fixed-profit-rate unsecured and secured SME finance to Al Rayan Bank's Islamic commercial property finance for 2.5m to 32m GBP deals. Founded by Robert Mallon and Kyle Natter, and backed by Niya, a Silicon Valley venture studio, HalalWallet provides independent comparisons of halal business financing so UK entrepreneurs can grow their businesses without interest.
Islamic Business Financing in the UK
From Qardus's fixed-profit SME finance to Al Rayan's commercial property desk. Compare structures, terms, and Shariah oversight.
Reviewed quarterly and updated when provider data, product availability, or pricing changes.
Top Picks
Top Islamic Business Financing Providers
Every provider reviewed against published terms: profit rates, fees, ceilings, and who actually certifies the Shariah structure.
Ranked by Halal Money Index grade: disclosed Shariah governance, transparency, pricing disclosure and track record. Not sponsored.
AlRayan Bank UK
A-Diminishing Musharakah with Ijara (per bank's 2006 launch disclosure; current page quotes rental rates)
Best for: Professional and institutional investors in UK residential-led commercial property needing 2.5m GBP+ of Sharia compliant finance
Shariah Oversight
Qardus
B-Fee plus fixed pre-agreed profit rate (contract not named on page; commodity murabaha is the market-standard structure)
Best for: Established UK SMEs (3+ years trading) in halal sectors that need GBP 25,000 to GBP 200,000 of fast working capital without interest and without pledging assets
Shariah Oversight
Compare Islamic Business Financing
Published products side by side: structure, ceiling, tenure, and Shariah oversight.
Availability
Structure
Sharia Oversight
Amount Range
Opens provider site - no obligation
Our Analysis
Business financing is the category where published Islamic products are thinnest in the UK, and being honest about that matters more than padding a list. What exists as defined offers: Qardus's unsecured business finance (fixed profit rate plus arrangement fee, soft search at application, terms up to five years), its secured variant against existing business assets, and Al Rayan Bank's commercial property finance for deals from 2.5m to 32m GBP with no early settlement fees.
Neither Qardus nor Al Rayan publishes a rate card: SME profit rates are quoted per deal against your financials, and Al Rayan's rental rate, finance-to-value, and fees are all negotiable per transaction. That is normal for business finance, halal or conventional, but it means no comparison table can honestly rank pricing. What we can compare is structure, transparency, and Shariah governance, which is what our table shows.
Practical guidance: use the soft-search application to get a real quote without credit-file damage, insist on the total repayment figure in writing, and confirm who certified the Shariah structure. On commercial property, the absence of early settlement fees at Al Rayan is genuinely useful: it means paying the finance down early costs nothing extra.
Home financing is just one of 7 categories. Average score: 63/100.
See yoursHow Islamic Business Financing Works in the UK
Trade and partnership structures replace interest, from fixed-profit SME finance to rental-based commercial property deals
Fixed Profit, Not Interest
Qardus structures its SME finance with a pre-agreed arrangement fee plus a fixed profit rate set in advance, so the total cost is known at signing. There is no interest and rates are quoted per deal rather than published.
Unsecured SME Finance
Qardus's unsecured product uses a soft search at application, so checking eligibility does not mark your credit file. Decisions are based on your business financials, with terms up to five years.
Secured Business Finance
For larger needs, Qardus's secured product raises finance against existing business assets, again at a fixed profit rate with terms up to five years.
Commercial Property Finance
Al Rayan Bank finances commercial property from 2.5m to 32m GBP on Islamic structures, with rental rate, finance-to-value, and fees negotiated per deal, no early settlement fees, and sale of the property allowed at any time subject to administration.
Shariah Oversight
Al Rayan Bank operates under its Shariah Supervisory Committee, and Qardus structures its products with Shariah certification. Ask who certifies the contract and get the total cost in writing before signing.
UK-Wide, Digital First
Both providers serve England, Scotland, Wales, and Northern Ireland. Qardus runs an online application process; Al Rayan's commercial desk works through relationship managers.
Choosing Islamic Business Financing
What Do You Actually Need to Finance?
You need working capital, stock, or growth funding
Qardus's unsecured business finance quotes a fixed profit rate plus arrangement fee per deal, on terms up to five years, with a soft search at application so checking eligibility costs nothing on your credit file.
You need a larger amount and have business assets
Qardus's secured business finance raises finance against existing business assets at a fixed profit rate, again on terms up to five years.
You're buying or refinancing commercial property
Al Rayan Bank finances commercial property from 2.5m to 32m GBP on Islamic structures, with rental rate and finance-to-value negotiated per deal, no early settlement fees, and the freedom to sell at any time subject to administration.
You're a startup without trading history
Build toward eligibility: equity from family or investors structured as a partnership, assets bought on Shariah-compliant instalments, and clean trading records. Equity investment in a halal business is inherently permissible.
Business Financing by Nation
Both providers serve all four UK nations: see what operates where you are
Frequently Asked Questions
Guides & Resources
Halal Finance Guide →
The principles behind Murabaha, Ijarah, and partnership finance.
Provider Reviews →
Deep dives on Qardus, Al Rayan Bank, and every UK provider we track.
Zakat on Business Assets →
Inventory, receivables, and business cash: what is zakatable and when.
Islamic Property Finance →
How rental-based property finance works, for homes and beyond.
Explore Other Categories
Zakat & Islamic Finance Resources
Understand Zakat on business assets and Islamic finance principles.
Quick Answer
The best Islamic business financing in the UK depends on what you need. For working capital, stock, or growth funding, Qardus offers Sharia-compliant unsecured business finance with a pre-agreed arrangement fee plus a fixed profit rate set in advance, terms up to five years, and a soft search at application. For larger amounts against business assets, Qardus's secured variant works the same way. For commercial property, Al Rayan Bank finances deals from 2.5m to 32m GBP on Islamic rental structures with no early settlement fees. Rates in this category are quoted per deal rather than published, so get the total repayment figure in writing.
Key Takeaways
- Qardus provides fixed-profit-rate SME finance, unsecured and secured, with terms up to five years and no interest.
- Its soft-search application means checking eligibility does not mark your credit file.
- Al Rayan Bank's commercial property finance covers 2.5m to 32m GBP with negotiable rental rate and finance-to-value, and no early settlement fees.
- No provider in this category publishes a rate card; pricing is quoted per deal against your financials, so compare total written quotes.
- Both providers serve England, Scotland, Wales, and Northern Ireland.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
How to cite this page
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Halal Finance Score
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Average score: 63/100
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.