Sharia Finance - Hilton Smythe

Sharia Finance

Seeking growth within your faith? We understand the unique challenges facing Sharia-compliant businesses who cannot take advantage of the conventional debt-based products on the market.

At Hilton Smythe, our knowledgeable brokers are passionate about connecting businesses with ethical and transparent funding options that honour their owners’ beliefs.

An image representing Sharia Finance or Islamic Finance

What is Sharia Finance?

Islamic finance or Sharia-compliant finance is a term encompassing financial products that are compatible with the laws of Islam.

Foundational principles within Islamic Finance include:

  • Prohibition on usury, interest or excess: Sharia law prohibits the use of interest and premiums, referred to as “riba” in Islamic finance, and prioritising risk-sharing and profit-sharing arrangements between the institution and its clients.
  • Prohibition on speculation or uncertainty: Sharia-compliant prohibits speculative activities known as “maysir,” which translates to “gambling” and encompasses elements of unpredictable outcomes and profit derived solely from chance. As a result, many derivative transactions commonly employed in conventional finance, where the value fluctuates based on underlying assets, are considered unsuitable for Sharia-compliant investors. Additionally, conventional insurance products often fall under the category of “haram” (forbidden) due to their inherent reliance on uncertain future events.
  • Prohibition of haram goods, services and activities: Investment must not be in businesses related to alcohol, pork products, gambling, pornography and weaponry.

Conventional debt-based products are not allowed on the basis that the investor makes profit by means of receiving interest.

  • Over 35 years experience
  • Completely independant
  • Honest Advice
  • Tailor-made solutions

Islamic banks in the UK include:

Fully Sharia-compliant

  • Abu Dhabi Islamic Bank
  • Al Rayan Bank
  • Bank of London and The Middle East
  • Gatehouse Bank
  • QIB UK

Conventional banks offering Islamic financial services

  • ABC International Bank
  • Ahli United Bank
  • Bank of Ireland
  • Barclays
  • BNP Paribas
  • Bristol & West
  • Citi Group
  • IBJ International London
  • J Aron & Co
  • Lloyd’s Banking Group
  • Royal Bank of Scotland
  • Standard Chartered
  • UBS
  • United National Bank

From working capital solutions to project financing, we navigate the intricate world of Sharia-compliant finance on your behalf:

  • Profit-sharing (Mudarabah): Collaborate with investors who share in your profits and losses.
  • Cost-plus financing (Murabaha): Purchase assets through a transparent markup on their cost, inclusive of a pre-agreed profit margin.
  • Leasing (Ijarah): Gain access to equipment or property through lease agreements with ownership options.

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Benefits of working with Hilton Smythe:

  • Market independence: Forget biased recommendations. We’re 100% independent financial advisers, free from funder or product restrictions. No commissions, no conflicts, just your best shot at financing tailored to your goals.
  • Access to a wide panel of lenders: We source exclusive loan deals unavailable through traditional lenders, unlocking bespoke lending solutions that meet your specific needs.
  • A leading SME finance specialist: We’ve been focused exclusively on SMEs since 2018, helping countless businesses reach their growth goals.
Other types of Commercial Finance
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  • Structured Finance

    Need complex funding solutions? Enter structured finance – a way to design flexible financing solutions that reduce the risk profiles of investments while improving liquidity

  • Invoice Discounting

    Want to improve your cash flow while managing your own credit control process? Invoice discounting is a form of Invoice financing that helps you to confidentially access funds tied up in unpaid invoices to release working capital. Click the link below to find out more.