Funding11.com Review

Based on looking at the website Funding11.com, this platform primarily operates as a commercial finance brokerage, offering various loan and credit facilities.

While it presents itself as a solution for business and property funding, a critical review from an ethical standpoint reveals significant concerns, particularly regarding interest-based transactions and the lack of explicit halal finance options.

Such offerings are generally considered impermissible in Islam due to the involvement of Riba interest, which is strictly prohibited.

Therefore, Funding11.com is not recommended for those seeking Sharia-compliant financial solutions.

Overall Review Summary:

• Service Type: Commercial Finance Brokerage
• Primary Offerings: Business Loans, Bridging Finance, Credit Lines, Invoice Finance, Corporate Credit Cards
• Key Concern: All listed financial products involve interest Riba, making them non-halal.
• Regulatory Status: Not authorized and regulated by the Financial Conduct Authority FCA for the loans they broker, as these fall outside of general regulation.
• Transparency: Provides company registration details, contact information, and policies like Terms of Service, Privacy Policy, and Complaints Policy.
• Recommendation for Muslims: Not Recommended due to Riba.

The website emphasizes its ability to secure funding packages from £10,000 to £250 million, highlighting a flexible approach and partnerships with lenders chosen by the government-owned British Business Bank.

They claim to offer solutions even when traditional lenders decline, boasting competitive rates.

However, the core issue lies in the nature of these financial products.

The stated interest rates, such as “Rates start from 0.60% per month” for business loans and “Corporate Credit Card Great rates as low as 16.54% APR,” explicitly indicate an interest-based model.

In Islamic finance, transactions involving Riba are prohibited because they are seen as exploitative and unjust, creating wealth without real economic activity or risk-sharing.

This fundamental difference makes Funding11.com unsuitable for individuals and businesses committed to Islamic principles.

For those seeking ethically sound financial solutions, especially within the context of Islamic finance, the focus should shift to models that prioritize equity, risk-sharing, and asset-backed transactions, rather than debt with interest.

Alternatives often involve profit-sharing agreements, Murabaha cost-plus financing, Ijara leasing, and Sukuk Islamic bonds, all designed to avoid Riba.

Best Alternatives for Ethical and Halal Business Solutions:

• Alhamdulillah IT Solutions
  • Key Features: Offers IT services, software development, and digital solutions with a focus on ethical business practices.
  • Price: Project-based pricing, varies greatly depending on scope.
  • Pros: Supports businesses in developing digital infrastructure without engaging in interest-based finance. promotes ethical technology.
  • Cons: Not a direct financial service provider. requires capital outlay for services.
• Islamic Relief USA
  • Key Features: Focuses on humanitarian aid and sustainable development, often partnering with businesses for ethical corporate social responsibility CSR initiatives. Not a financing solution, but an avenue for ethical investment and social impact.
  • Price: Donation-based or partnership-based. no direct service fees.
  • Pros: Highly reputable non-profit. aligns with Islamic principles of charity and social good. provides avenues for ethical business engagement.
  • Cons: Not a commercial funding alternative. focuses on social impact rather than direct business growth.
• Amana Mutual Funds
  • Key Features: Offers Sharia-compliant investment funds for individuals and institutions, investing in companies that meet Islamic ethical criteria.
  • Price: Management fees vary by fund e.g., 0.95% to 1.60% expense ratios.
  • Pros: Fully Sharia-compliant investment options. professionally managed. diverse portfolio opportunities.
  • Cons: Investment rather than direct business funding. returns are not guaranteed and depend on market performance.
• Halal Mortgage Providers e.g., Guidance Residential
  • Key Features: Provides home financing based on Murabaha cost-plus financing or Ijara leasing models, avoiding conventional interest.
  • Price: Profit rates and fees vary based on the specific contract and market conditions.
  • Pros: Allows for property acquisition without Riba. structured to be Sharia-compliant.
  • Cons: Primarily for real estate, not general business funding. options might be limited geographically.
• Islamic Finance Consultancies
  • Key Features: Offer advisory services on structuring business operations and investments to be Sharia-compliant, including fundraising strategies.
  • Price: Fee-based, varies greatly depending on the scope of consultation.
  • Pros: Provides expert guidance on ethical financial practices. helps businesses find halal funding sources.
  • Cons: Consultative service, not a direct funding source. requires additional effort to implement recommended strategies.
• Crowdfunding Platforms Sharia-compliant, if available
  • Key Features: Platforms like Seedrs or Crowdcube ensure specific campaigns are Sharia-compliant where businesses can raise capital from a large number of individuals in exchange for equity, avoiding interest.
  • Price: Platform fees and equity dilution. varies by platform and campaign success.
  • Pros: Equity-based funding avoids Riba. can engage a community of supporters.
  • Cons: Success is not guaranteed. requires significant marketing effort to attract investors. due diligence is crucial to ensure Sharia compliance of the underlying business.
• Ethical Investment Funds General
  • Key Features: While not exclusively Islamic, many ethical funds screen out companies involved in industries like alcohol, gambling, and conventional finance, aligning with broader ethical principles.
  • Price: Expense ratios and management fees vary by fund.
  • Pros: Supports businesses with strong ethical governance. generally aligns with socially responsible investing.
  • Cons: May not fully meet all specific Sharia criteria unless explicitly stated as Islamic.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Funding11.com Review & First Look

Based on a thorough review of its homepage, Funding11.com positions itself as a robust commercial finance brokerage. The initial impression suggests a professional and well-structured platform aimed at addressing diverse business and property funding needs. They prominently display loan amounts ranging from £10,000 to £250 million, immediately signaling their capacity for significant financial arrangements. The website emphasizes flexibility, claiming to offer solutions even when traditional lenders might “walk away.” This narrative aims to attract businesses facing challenges in securing conventional financing.

However, a deeper dive reveals that the core offerings are deeply rooted in interest-based models, which fundamentally contradict Islamic financial principles.

The website lists various financial products, including:

• Business Loans: “Rates start from 0.60% per month”
• Bridging Finance: “Rates start from 0.65% per month”
• Credit Line: “Rates start from 0.75% per month”
• Invoice Finance: “Rates start from 1% per month”
• Corporate Credit Card: “Great rates as low as 16.54% APR”

These explicit mentions of interest rates and APR Annual Percentage Rate are red flags for anyone adhering to Islamic finance.

Riba, or interest, is unequivocally prohibited in Islam.

This prohibition is not merely a recommendation but a core tenet, designed to prevent economic exploitation, promote equitable wealth distribution, and encourage real economic activity backed by tangible assets and shared risk.

The Quran and Sunnah repeatedly condemn Riba, highlighting its detrimental impact on society and individual well-being.

Therefore, despite the apparent professionalism and breadth of services, Funding11.com’s reliance on interest-based lending makes it an unsuitable option for the Muslim community.

Funding11.com Cons: Why It’s Not Permissible

The primary and most critical drawback of Funding11.com, from an Islamic perspective, is its direct involvement in and promotion of interest-based financial products.

This is not a minor detail but a fundamental conflict with Sharia law. Sun-hat-villas.com Review

• Riba Interest Prohibition: Every single financial product advertised by Funding11.com—business loans, bridging finance, credit lines, invoice finance, and corporate credit cards—explicitly states rates that are indicative of interest. For example, “Rates start from 0.60% per month” for business loans is a clear indicator of Riba. Islam strictly prohibits Riba because it is considered exploitative, generating wealth from money itself rather than from productive effort, trade, or shared risk. The Quran states in Surah Al-Baqarah 2:275, “Allah has permitted trade and forbidden interest.” Engaging in interest-based transactions, whether as a lender or a borrower, is seen as a grave sin with severe spiritual and economic consequences.
• Lack of Halal Alternatives: The website makes no mention of Sharia-compliant financial products such as Murabaha cost-plus sale, Musharakah partnership, Mudarabah profit-sharing, Ijara leasing, or Sukuk Islamic bonds. This omission signifies that their entire operational model is conventional and thus, non-halal. A legitimate Islamic financial institution would prominently feature these alternatives.
• Ethical Concerns Beyond Riba: While Riba is the most glaring issue, the broader implications of conventional finance often extend to other ethical concerns. The pursuit of profit through interest can incentivize speculative practices, contribute to debt crises, and widen wealth disparities. In contrast, Islamic finance promotes risk-sharing, social justice, and investment in ethical industries, aligning finance with broader societal well-being. The absence of these principles means Funding11.com operates outside the ethical framework that Islamic finance strives to establish.
• Regulatory Loopholes: Funding11.com explicitly states, “Funding11 is not authorised and regulated by the Financial Conduct Authority. The loans we broker fall outside of regulation, therefore we are not required to hold authorisation by the Financial Conduct Authority.” While they are registered as a data controller with ICO, and provide company numbers Company No: 11722998, the lack of FCA regulation for the specific loan products they broker is a significant point of concern. For consumers, this could imply reduced oversight, fewer protections, and potentially less recourse in case of disputes, compared to dealing with fully FCA-regulated entities. This regulatory gray area, combined with the interest-based model, makes it an even riskier proposition for those seeking ethical and secure financial services.

Funding11.com Process: A Conventional Approach

Funding11.com outlines a straightforward, three-step process for businesses to apply for funding.

This process is typical of many online financial brokerages, designed for speed and convenience.

• Step 1: Check your eligibility. The website encourages potential clients to quickly assess if they meet the basic criteria. This often involves a soft credit check or an initial questionnaire to gauge financial health and business viability without impacting the credit score, as they explicitly state, “It will only take a minute and will not have any impact on your credit score.”
• Step 2: Fill in your company details. Once eligibility is confirmed, the next step involves providing comprehensive information about the business. This would typically include financial statements, business plans, company registration details, and possibly projections.
• Step 3: Fill in your personal details. Finally, applicants are required to provide personal information, likely including details of directors, shareholders, and potentially personal financial guarantees, depending on the type and size of the funding requested.

This process is highly efficient for conventional lending.

However, it still leads to interest-based financial products.

An Islamic finance alternative would involve a different due diligence process focused on the underlying assets, the nature of the business, and the profit-sharing or leasing arrangements rather than creditworthiness for an interest-bearing loan.

For example, a Musharakah partnership financing process would involve a detailed assessment of the business venture’s projected profits and risks, as the financier would share in both.

Similarly, an Ijara leasing agreement would focus on the asset being leased and its expected useful life.

Funding11.com Alternatives: Embracing Ethical Finance

Given the fundamental issues with Funding11.com’s interest-based model, it is crucial to explore and advocate for alternatives that align with Islamic ethical principles.

These alternatives focus on real economic activity, risk-sharing, and social responsibility, rather than debt accumulation and interest.

• Halal Investment and Savings Platforms:
  • Amana Mutual Funds: As mentioned in the introduction, Amana offers several mutual funds that invest in companies screened for Sharia compliance. This means avoiding industries like alcohol, gambling, conventional banking, and ensuring transactions are free from Riba. It’s an excellent option for individuals and businesses looking to grow wealth ethically.
  • Wahed Invest: This is another robo-advisor platform offering diversified, Sharia-compliant portfolios. Wahed screens stocks and other assets to ensure they meet Islamic ethical criteria, making it accessible for Muslims to invest responsibly.
• Islamic Banks and Financial Institutions:
  • While less prevalent in the US compared to some other regions, a growing number of Islamic banks and financial institutions globally offer a full suite of Sharia-compliant products, including corporate finance, trade finance, and project finance. These institutions structure deals using Murabaha, Mudarabah, Musharakah, Ijara, and other Islamic contracts, avoiding Riba. Examples include Islamic Development Bank IsDB on a global scale and various Islamic finance windows within conventional banks in Western countries.
• Takaful Islamic Insurance:
  • Conventional insurance involves elements of Riba, Maysir gambling, and Gharar excessive uncertainty. Takaful operates on principles of mutual cooperation and solidarity, where participants contribute to a common fund, and claims are paid out from this fund. Companies like Takaful Emarat or Retakaful providers offer Sharia-compliant insurance solutions for businesses and individuals, safeguarding assets without violating Islamic principles.
• Ethical Crowdfunding Platforms Equity-Based:
  • Platforms that facilitate equity-based crowdfunding for businesses can be Sharia-compliant if the underlying business and its operations adhere to Islamic principles. Investors become shareholders, sharing in the profits and losses, rather than lending money with interest. Platforms like LaunchGood primarily for social impact, but can include business ventures or general equity crowdfunding platforms with careful due diligence on the business model offer a viable alternative to debt.
• Direct Equity Partnership Musharakah/Mudarabah:
  • For businesses seeking capital, direct partnerships with investors individuals or groups who share in the profits and losses of a venture are a truly Islamic model. This is the essence of Musharakah partnership and Mudarabah profit-sharing. This approach requires trust and clear profit-sharing agreements, but it ensures that financing is directly tied to productive economic activity and shared risk.
• Qard Hassan Benevolent Loan:
  • While not a commercial funding model, Qard Hassan is an interest-free loan concept in Islam, typically extended for social welfare or small-scale needs without any expectation of return beyond repayment of the principal. While not suitable for large commercial financing, it underscores the Islamic emphasis on benevolent lending and can be explored within community networks for micro-financing or emergency needs.

Funding11.com Pricing: The Cost of Interest

Funding11.com’s pricing structure is explicitly based on interest rates and broker fees, which, as previously highlighted, are problematic from an Islamic finance perspective. The website clearly states: Spothero.com Review

These percentages represent the cost of borrowing money over time, which is the definition of Riba.

For instance, a 0.60% monthly interest rate on a business loan translates to a significant annual interest rate, excluding compounding.

A corporate credit card with “as low as 16.54% APR” is a standard interest-bearing credit product.

Furthermore, Funding11.com operates as a broker, not a direct lender.

Their disclaimer explicitly states: “Funding11 may charge you a broker fee and receive a commission from the finance provider, and this amount can vary depending on the product or finance provider chosen.” This means that on top of the interest charged by the ultimate lender, businesses would also be liable for a broker fee and potentially a commission, further increasing the overall cost of the financing.

In contrast, an Islamic financial product’s “pricing” would look fundamentally different:

• Murabaha Cost-Plus Sale: The financier purchases an asset and sells it to the client at a predetermined profit margin. The client pays back the original cost plus the profit over an agreed period. There is no interest on the outstanding balance.
• Ijara Leasing: The financier leases an asset to the client for a fixed rental period. The cost is the rental payment, not interest on a loan.
• Musharakah/Mudarabah Partnership/Profit-Sharing: The “cost” to the business is a share of the actual profits generated by the venture. If there are no profits, the financier may not receive any return in Mudarabah or shares in the loss in Musharakah. This model directly ties the financier’s return to the success of the underlying economic activity, reflecting shared risk.

The absence of any such Sharia-compliant pricing models on Funding11.com reinforces its non-permissible status for Muslims.

The costs associated with their services are intrinsically linked to Riba, making them unsuitable for ethical investment and business growth according to Islamic principles.

How to Avoid Interest-Based Funding in Business

Avoiding interest-based funding is a cornerstone of Islamic finance and ethical business practices.

For entrepreneurs and businesses, this means proactively seeking out Sharia-compliant alternatives and structuring their financial operations to be free from Riba. Here’s a pragmatic approach: Roasterearn.website Review

• Understand Islamic Finance Principles: The first step is to educate oneself about the core concepts of Islamic finance, particularly the prohibition of Riba interest, Maysir gambling, and Gharar excessive uncertainty. Understanding models like Murabaha cost-plus sale, Ijara leasing, Musharakah partnership, and Mudarabah profit-sharing is essential. Resources from institutions like the Islamic Financial Services Board IFSB or AAOIFI Accounting and Auditing Organization for Islamic Financial Institutions provide comprehensive insights.
  • Actionable Tip: Search for “Islamic finance for business ” to identify local options.
• Leverage Equity-Based Funding:
  • Angel Investors & Venture Capital VC Funds: Seek out investors who are willing to take an equity stake in your business rather than providing debt with interest. This aligns with Musharakah, where the investor shares in the profits and losses. Many ethical and even some conventional VCs operate on this model.
  • Crowdfunding: Utilize equity crowdfunding platforms where individuals invest in your business in exchange for shares. Ensure the platform and the specific campaign adhere to ethical guidelines and avoid interest-based structures.
  • Self-Funding/Bootstrapping: Where possible, funding your business through personal savings or retained earnings completely bypasses external financing and its associated challenges.
• Utilize Trade-Based Financing Murabaha: For acquiring specific assets or inventory, seek out suppliers or specialized financiers who can offer Murabaha contracts. In this arrangement, the financier buys the asset and sells it to you at a pre-agreed mark-up, payable in installments. This avoids direct interest on a loan.
• Explore Leasing Ijara: Instead of purchasing heavy machinery, equipment, or even property with an interest-bearing loan, consider leasing options structured as Ijara. The financier owns the asset and leases it to your business for a fixed rental fee over time.
• Strategic Partnerships: Form alliances with other businesses or individuals where resources, expertise, and profits are shared, similar to a Musharakah arrangement. This can facilitate growth without relying on conventional debt.
• Consult Islamic Finance Experts: Engage with consultants who specialize in Islamic finance. They can help structure your business operations, contracts, and funding needs to ensure full Sharia compliance. This is particularly crucial for complex financial arrangements.
• Avoid Conventional Credit Cards and Loans: While tempting for quick access to funds, conventional credit cards and lines of credit are inherently interest-bearing. Implement strict policies to avoid using these for business expenses or operational cash flow.
  • Statistic: According to a 2022 survey by the Federal Reserve, a significant percentage of small businesses in the U.S. over 50% rely on conventional credit cards for financing, underscoring the pervasive nature of interest-based borrowing. Shifting this reliance requires conscious effort and strategic planning.

By actively pursuing these halal alternatives and integrating Islamic finance principles into business strategy, entrepreneurs can achieve growth and success while adhering to their ethical and religious obligations.

FAQ

What is Funding11.com?

Funding11.com is a commercial finance brokerage based in the UK, specializing in arranging business loans, bridging finance, credit lines, invoice finance, and corporate credit cards for businesses and property developers.

Is Funding11.com a direct lender?

No, Funding11.com clearly states in its disclaimer that it is a broker, not a lender.

It assists UK companies in accessing commercial finance from various providers on its panel.

What types of financing does Funding11.com offer?

Funding11.com offers a range of financial products including business loans, bridging finance, credit lines, invoice finance, and corporate credit cards, with loan amounts ranging from £10,000 to £250 million.

Are Funding11.com’s services Sharia-compliant?

No, Funding11.com’s services are not Sharia-compliant.

The website explicitly states interest rates e.g., “Rates start from 0.60% per month” for business loans, which indicates the involvement of Riba interest, strictly prohibited in Islam.

Why is interest Riba forbidden in Islam?

Riba is forbidden in Islam because it is considered exploitative and unjust.

It creates wealth from money itself rather than from productive effort, trade, or shared risk, leading to economic inequality and instability.

Is Funding11.com regulated by the Financial Conduct Authority FCA?

No, Funding11.com states that it is not authorized and regulated by the Financial Conduct Authority FCA for the loans they broker, as these specific types of loans fall outside of general FCA regulation. Proptraders.xyz Review

What are the alternatives to interest-based funding for businesses?

Alternatives to interest-based funding include Sharia-compliant models such as Murabaha cost-plus financing, Ijara leasing, Musharakah partnership, Mudarabah profit-sharing, equity crowdfunding, and seeking direct equity investment.

Can I find Sharia-compliant financial products in the UK?

Yes, while perhaps not as widely available as conventional products, there are Islamic banks, Islamic finance windows within conventional banks, and specialized Sharia-compliant financial service providers in the UK that offer ethical business funding options.

What is Murabaha financing?

Murabaha financing is an Islamic finance contract where a financier purchases an asset e.g., equipment or inventory and then sells it to the client at a predetermined, agreed-upon profit margin, with payments made in installments. It avoids interest.

What is Ijara financing?

Ijara financing is an Islamic leasing contract where a financier leases an asset to a client for a fixed rental fee over an agreed period, without the involvement of interest. The financier retains ownership of the asset.

What is Musharakah financing?

Musharakah financing is an Islamic partnership agreement where two or more parties contribute capital to a business venture and share the profits and losses according to a pre-agreed ratio.

It’s a form of equity financing based on shared risk.

What is Mudarabah financing?

Mudarabah is an Islamic profit-sharing contract where one party provides the capital Rabb-ul-Mal and the other party provides the expertise and management Mudarib. Profits are shared according to a pre-agreed ratio, while losses are borne by the capital provider.

Does Funding11.com charge a broker fee?

Yes, Funding11.com’s disclaimer states that they may charge a broker fee and receive a commission from the finance provider, and this amount can vary depending on the chosen product or provider.

How does Funding11.com’s application process work?

The application process involves three steps: checking eligibility, filling in company details, and then providing personal details.

They claim it takes minutes and does not impact your credit score initially. Laylafashionuk.com Review

What is a corporate credit card offered by Funding11.com?

Funding11.com offers a corporate credit card with credit limits up to £75,000, promising low APR as low as 16.54%, no FX or annual fees, and 1% cashback on all spending. However, it is an interest-bearing product.

Where is Funding11.com registered?

Funding11.com is the trading name of FND11 Ltd, registered in England and Wales with its registered office at Floor 37, One Canada Square, Canary Wharf, London E14 5AA. Its Company No: is 11722998.

What is the significance of the British Business Bank’s association with Funding11.com’s panel lenders?

Funding11.com highlights that the government-owned British Business Bank has chosen most lenders on their panel to help businesses.

This implies a level of governmental endorsement or recognition for the underlying lenders, though it doesn’t change the interest-based nature of the products.

Does Funding11.com offer a free trial for its services?

No, Funding11.com does not offer a “free trial” in the typical sense for its brokerage services.

Their process involves checking eligibility and applying for actual financial products, which carry associated costs interest, fees if approved and utilized.

How can a business ensure its finances are ethically sound?

To ensure ethically sound finances, a business should:

1. Avoid interest-based loans and credit.

2. Focus on equity-based partnerships and profit-sharing models.

3. Utilize Sharia-compliant investment and financing solutions. Housejet.com Review

4. Engage in trade and leasing contracts structured without Riba.

5. Consult with Islamic finance experts.

What is “Bridging Finance” as offered by Funding11.com?

Bridging finance is a short-term loan designed to “bridge” a funding gap, typically used in property transactions e.g., purchasing a new property before selling an old one. Funding11.com offers this with rates starting from 0.65% per month, indicating it is an interest-bearing product.