Kriya.co Review

Based on checking the website Kriya.co, it’s clear they specialize in financial tools designed to help businesses manage payments and credit.

Their offerings, such as “Embedded PayLater,” “Invoice Finance,” and “Working Capital Loans,” are primarily focused on providing various forms of credit and financing solutions.

While the website highlights benefits like increased sales and improved cash flow, it’s crucial to understand that these services fundamentally involve interest-based transactions, which are not permissible in Islamic finance.

Here’s an overall review summary of Kriya.co:

• Service Type: Financial services, specifically credit and lending for businesses Embedded PayLater, Invoice Finance, Working Capital Loans.
• Ethical Compliance Islamic Finance: Not permissible due to involvement in interest riba.
• Website Clarity: Clear and professional, outlining services and success stories.
• Transparency: Provides high-level data on payments processed and credit advanced.
• Customer Support: Offers options to book a demo or call for consultation.
• Business Model: Facilitates various forms of lending and credit, which typically involves interest.

While Kriya.co presents itself as a solution for business growth and liquidity, the core nature of its services—providing loans, financing against invoices, and deferred payment terms—means it operates on principles that often involve interest riba. In Islamic finance, earning or paying interest is strictly prohibited, as it is considered exploitative and unjust.

Therefore, from an Islamic perspective, engaging with platforms like Kriya.co for financing needs is not recommended.

Businesses should seek out Sharia-compliant alternatives that adhere to ethical financial principles.

Best Alternatives for Ethical Business Growth:

For businesses seeking to manage cash flow and grow ethically, without resorting to interest-based financing, here are some viable alternatives:

• Qard Hasan Interest-Free Loans through Community Funds: While not directly a product, many Islamic microfinance institutions or community funds offer Qard Hasan, which are benevolent loans without any interest or fees. This is a primary ethical alternative to conventional loans.

  

  • Key Features: Zero interest, social responsibility, often community-driven.
  • Average Price: No cost of borrowing only repayment of principal.
  • Pros: Sharia-compliant, fosters community support, helps those in genuine need.
  • Cons: Availability may be limited, typically for smaller amounts, stricter eligibility.

• Murabaha Financing for Inventory/Assets: This is an Islamic financing structure where a bank or financier buys an asset like inventory and then sells it to the client at a pre-agreed mark-up. The client pays in installments.

  • Key Features: Asset-backed, transparent cost, pre-agreed profit margin.
  • Average Price: Mark-up determined at the time of sale.
  • Pros: Sharia-compliant, suitable for asset acquisition, clear payment terms.
  • Cons: Can be more complex to structure, requires specific asset ownership by the financier.

• Musharakah Partnership Financing: A partnership arrangement where both parties contribute capital and share profits and losses based on a pre-agreed ratio. This is ideal for joint ventures or project financing.

  • Key Features: Profit/loss sharing, joint ownership, flexibility in capital contribution.
  • Average Price: Shared profits/losses, no fixed interest.
  • Pros: Highly ethical, promotes equity, adaptable to various business structures.
  • Cons: Requires greater trust and transparency, potential for disagreements if terms aren’t clear.

• Ijarah Leasing: An Islamic leasing agreement where the financier purchases an asset and leases it to the client for a specified period, with ownership typically transferring at the end.

  • Key Features: Asset-based, avoids interest, clear rental payments.
  • Average Price: Rental fees no interest.
  • Pros: Sharia-compliant for equipment and property, predictable payments, can lead to ownership.
  • Cons: May be more expensive than direct purchase if not structured well, long-term commitment.

• Venture Capital Equity Investment: Instead of debt, seeking equity investment where investors provide capital in exchange for a share of the company’s ownership. Profits are shared through dividends or capital gains.

  • Key Features: No debt burden, shared risk, strategic partners.
  • Average Price: Dilution of ownership, profit sharing.
  • Pros: Sharia-compliant, brings expertise, long-term growth focus.
  • Cons: Loss of some control, finding suitable investors can be challenging.

• Crowdfunding Equity or Reward-Based: Platforms that allow businesses to raise capital from a large number of individuals, either in exchange for equity Sharia-compliant if structured properly or as a pre-sale for products/services reward-based.

  • Key Features: Wide reach, direct engagement with supporters, no debt.
  • Average Price: Platform fees, equity dilution if applicable.
  • Pros: Sharia-compliant if equity/reward-based, builds community, tests market demand.
  • Cons: High marketing effort, not guaranteed funding, platform fees.

• Sukuk Islamic Bonds: For larger financing needs, Sukuk are Sharia-compliant financial certificates that represent ownership in tangible assets or a share in a business venture, providing returns based on underlying assets or profit sharing, not interest.

  • Key Features: Asset-backed, profit-sharing, avoids interest.
  • Average Price: Returns based on asset performance/profit sharing.
  • Pros: Sharia-compliant, attractive to ethical investors, can raise significant capital.
  • Cons: Complex to structure, generally for larger corporations or government projects.

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.

Kriya.co Review: A Deep Dive into Their Financial Offerings

Kriya.co, previously known as MarketFinance, positions itself as a crucial partner for businesses aiming to unlock payments and credit.

Based on their website, the platform offers a suite of financial tools including “Embedded PayLater,” “Invoice Finance,” and “Working Capital Loans.” While these services are designed to address common business challenges like cash flow gaps and the need for immediate capital, it’s essential to scrutinize them through an ethical lens, particularly concerning Islamic finance principles.

The website showcases impressive metrics, such as £28bn+ payments processed and £3.7bn+ credit advanced since its launch in 2012, indicating a significant presence in the B2B finance sector.

However, the nature of these financial instruments, predominantly involving credit and loans, necessitates a closer look at their permissibility from an Islamic perspective, which strictly prohibits interest riba.

Kriya.co’s Core Offerings Examined

Kriya.co highlights three primary solutions to empower business growth and improve cash flow.

Each of these services, while seemingly beneficial for conventional businesses, has specific implications under Islamic financial law due to their underlying mechanisms.

Embedded PayLater: Deferred Payment Solutions

This service allows businesses to offer their B2B buyers flexible payment terms e.g., 30, 60, or 90 days. The Kriya.co website states that “82% of B2B buyers would pick a supplier because it offered 30, 60 or 90 day payment terms at checkout.” This suggests a strong market demand for such flexibility.

The system aims to help businesses sign up more buyers and boost conversion.

• Mechanism: Typically, a “PayLater” service involves a third party Kriya extending credit to the buyer, and the supplier receives immediate payment or payment after a short delay. Kriya then collects the deferred payment from the buyer, often with a fee or interest if payment is late.
• Ethical Consideration: If the deferred payment involves Kriya charging interest on the credit extended to the buyer, or if the supplier pays a fee that indirectly covers Kriya’s interest earnings from the buyer, this falls under the category of interest-based transactions, which are impermissible. Even if the supplier pays a fixed fee to Kriya, if that fee is tied to the duration of the payment terms or the amount of credit, it can become problematic.
• Impact on Businesses: While it can increase sales and buyer conversion, businesses must weigh the ethical implications of engaging in an interest-laden system.

Invoice Finance: Bridging Cash Flow Gaps

Invoice finance allows businesses to draw down funds against their trade invoices.

Kriya.co emphasizes its role in bridging cash flow gaps and enabling investment in growth. Oemusedautoparts1.com Review

They note that “60% of businesses utilising invoice finance see operational expansion within their first year.”

• Mechanism: This usually involves selling invoices to Kriya at a discount, or using invoices as collateral for a loan. Kriya advances a percentage of the invoice value immediately, and collects the full amount from the customer when the invoice is due, taking their fee/interest from the difference.
• Ethical Consideration: This practice, often referred to as factoring or invoice discounting, inherently involves interest riba because Kriya effectively provides a loan against future receivables and charges a fee or discount that is proportional to the time and amount of the advance. This direct charging of interest or a discount equivalent to interest makes it non-compliant with Islamic finance.
• Impact on Businesses: While providing quick access to liquidity, the interest component makes it a forbidden transaction from an Islamic perspective.

Working Capital Loans: Inventory and Operations Funding

Kriya.co offers working capital loans and lines of credit, allowing businesses to borrow to buy inventory or manage operational expenses, with repayment at a later date.

The website states that “29% of businesses fail due to a lack of working capital.”

• Mechanism: These are direct loans provided by Kriya to businesses. Standard working capital loans in conventional finance almost invariably involve interest charges on the principal borrowed.
• Ethical Consideration: Lending money with a pre-determined interest rate riba is explicitly forbidden in Islamic finance. This is one of the most direct forms of impermissible financial transactions.
• Impact on Businesses: Despite the immediate financial relief and growth opportunities it may offer, engaging in interest-bearing loans is a major ethical violation for a Muslim business.

Ethical Review: Why Kriya.co’s Services Are Not Permissible

From an Islamic finance perspective, Kriya.co’s suite of services falls into the category of interest-based transactions riba, which are strictly prohibited.

The prohibition of riba is a cornerstone of Islamic economic principles, aiming to foster fairness, equity, and genuine productivity rather than profiting from mere money lending.

Understanding Riba Interest in Islamic Finance

Riba refers to any increase or addition to the principal amount of a loan, without a corresponding risk or genuine commercial activity.

It is viewed as exploitative and unjust because it creates wealth without real economic contribution, shifting wealth from the borrower to the lender, often exacerbating inequality.

• Quranic Prohibition: The Quran explicitly condemns riba in multiple verses, stating that Allah destroys riba and gives increase for charities.
• Hadith Reinforcement: Numerous prophetic traditions reinforce the prohibition, condemning those who deal in riba, those who consume it, those who write it, and those who witness it.
• Economic Impact: Islamic scholars argue that riba leads to economic instability, debt dependency, and concentration of wealth, hindering true economic growth and social justice.

The Fundamental Issue with Kriya.co’s Model

Each of Kriya.co’s offerings, whether it’s embedded paylater, invoice finance, or working capital loans, involves a pre-determined charge on borrowed funds or deferred payments that behaves like interest.

• Hidden Riba: Even if fees are presented as “processing fees” or “discounts,” if they are directly linked to the amount borrowed and the duration of repayment, they are considered hidden riba.
• Lack of Risk Sharing: Islamic finance emphasizes profit-and-loss sharing and risk-sharing. Conventional lending, as offered by Kriya, places all risk on the borrower while ensuring a fixed return for the lender, which is contrary to Islamic principles.
• Promoting Debt: By making credit easily accessible, these platforms can encourage businesses to rely on debt rather than fostering organic growth through legitimate trade and real economic activities.

Kriya.co Pros & Cons with an Ethical Lens

While Kriya.co offers a modern approach to business finance, its suitability depends heavily on one’s ethical framework.

From a conventional business standpoint, there are apparent benefits, but from an Islamic perspective, the drawbacks are significant. Internationalvanlines.com Review

Conventional Business Pros:

• Improved Cash Flow: Access to immediate funds from invoices or loans can help bridge liquidity gaps, crucial for businesses with long payment cycles.
• Increased Sales & Conversion: Offering “PayLater” options can make a supplier more attractive, potentially boosting sales volumes and attracting more buyers.
• Streamlined Operations: Digital tools for finance can simplify the process of managing receivables and obtaining capital.
• Growth Opportunities: Access to working capital allows businesses to invest in inventory, marketing, or expansion without waiting for customer payments.
• Established Platform: Launched in 2012, Kriya.co formerly MarketFinance has processed significant volumes, indicating experience and reliability within the conventional finance sector.

Ethical Cons from an Islamic Perspective:

• Involvement in Riba Interest: This is the primary and most critical con. All core services provided by Kriya.co—Embedded PayLater, Invoice Finance, and Working Capital Loans—involve interest, making them impermissible for Muslims.
• Encourages Debt Dependency: Easy access to credit can lead businesses to rely on borrowing rather than sustainable, profit-and-loss sharing models.
• Lack of Risk Sharing: The model shifts financial risk predominantly onto the borrower while the lender Kriya secures a fixed return, which is contrary to Islamic principles of equitable risk distribution.
• Ethical Compromise: Engaging with such platforms means compromising on fundamental Islamic financial principles, which prioritize fairness, justice, and social well-being over unearned income.
• Potential for Over-Indebtedness: While seemingly a solution, reliance on easily accessible loans can lead to unsustainable debt burdens if not managed meticulously, especially when interest accrues.

Kriya.co vs. Ethical Finance Alternatives

Comparing Kriya.co to Sharia-compliant alternatives highlights the fundamental differences in their underlying philosophies and operational models.

Kriya.co:

• Focus: Bridging cash flow gaps and providing capital through interest-based loans and credit.
• Model: Conventional lending, factoring, and deferred payment solutions that involve interest.
• Risk: Fixed returns for the lender Kriya, higher risk for the borrower.
• Benefits: Quick access to liquidity, increased sales through credit offering conventional.
• Islamic Compliance: Not compliant due to riba.

Ethical Finance Alternatives e.g., Murabaha, Musharakah, Ijarah:

• Focus: Facilitating real economic transactions, asset acquisition, and genuine partnerships.
• Model: Asset-backed sales Murabaha, profit-and-loss sharing partnerships Musharakah, ethical leasing Ijarah, or benevolent loans Qard Hasan.
• Risk: Shared risk between financier and client, or direct asset ownership by financier.
• Benefits: Sharia-compliant, promotes fair trade, encourages productivity, fosters economic justice.
• Islamic Compliance: Fully compliant.

For a Muslim entrepreneur or business, the choice is clear: while Kriya.co might offer rapid financial solutions, the ethical cost of engaging in interest-based transactions is prohibitive.

The long-term spiritual and economic benefits of adhering to Islamic finance principles far outweigh the perceived short-term gains from conventional, interest-laden financial tools.

Kriya.co Pricing: An Overview from a conventional perspective

While Kriya.co’s website doesn’t offer explicit pricing tables or a “sign up now” button with detailed costs, their “Book a demo” or “Book a Call” approach suggests a tailored pricing model.

This is typical for B2B financial services where pricing depends on factors like:

• Loan Amount/Credit Limit: Larger amounts may have different rates.
• Creditworthiness: Businesses with stronger financial health might receive better terms.
• Repayment Period: Longer repayment periods typically accrue more interest.
• Service Type: The pricing structure for “Invoice Finance” will differ from “Working Capital Loans” or “Embedded PayLater.”
• Industry and Risk Profile: Some industries or business types are perceived as higher risk, influencing pricing.

What to expect on a call as per their website:

1. Discovery Call: About your goals & requirements.
2. Insights: How Kriya’s products can help.
3. Q&A: Time for questions, and to scope a partnership.
4. Indicative Terms and Pricing: If a good fit, they will move fast to provide these.

The implication for an ethical review: The absence of transparent, upfront pricing on their website, while common for B2B finance, means businesses would need to engage directly to understand the specific interest rates, fees, or discount percentages applied to their unique situation. However, regardless of the exact rates, the fundamental principle of charging for the time value of money interest remains, making it non-compliant.

Alternatives to Conventional Lending: Building a Halal Financial Foundation

Given the impermissibility of interest-based financing, it’s crucial for businesses to explore and adopt Sharia-compliant alternatives.

These alternatives are not just about avoiding prohibition.

They represent a holistic economic model rooted in justice, equity, and real economic activity. Renlanzz.myshoplaza.com Review

Direct Investment and Equity Partnerships

• Venture Capital Halal-Focused: Seek out venture capitalists or angel investors who are willing to invest equity into your business. This means they become part-owners and share in the profits and losses, rather than lending money at interest. This aligns perfectly with the concept of Musharakah.
• Crowdfunding Equity/Reward-Based: Platforms that facilitate equity crowdfunding where investors buy shares in your company. Alternatively, reward-based crowdfunding where customers pre-order products or services, providing upfront capital. Both avoid debt and interest.
• Self-Funding/Bootstrapping: Reinvesting profits back into the business and growing organically. This is the most independent and risk-averse approach, entirely free from external debt.

Islamic Financial Contracts for specific needs

• Murabaha Cost-Plus Sale: If you need to acquire specific assets like machinery or inventory, an Islamic bank or financier can purchase the asset and sell it to you at a transparent, agreed-upon mark-up, payable in installments. This is a legitimate trade transaction, not a loan.
• Ijarah Leasing: For equipment or property, an Islamic lease can be arranged where the financier owns the asset and leases it to you for a fixed rental period. At the end of the term, ownership can be transferred. This is an exchange of usufruct for rent, not interest.
• Musharakah Partnership: For project financing or business expansion, enter into a partnership where both parties contribute capital and share profits and losses according to agreed ratios. This embodies genuine risk-sharing.
• Mudarabah Profit-Sharing: Similar to Musharakah, but one party provides capital and the other provides expertise/labor. Profits are shared, while losses are borne by the capital provider unless due to misconduct.
• Salam Forward Sale with Advance Payment: Useful for agricultural or manufacturing businesses. A buyer pays upfront for a commodity to be delivered at a future date. This provides immediate cash flow for the producer.

Efficient Cash Flow Management Practices

• Negotiate Favorable Payment Terms: Work with suppliers and customers to optimize payment schedules that align with your cash flow cycle.
• Strong Accounts Receivable Management: Implement robust invoicing and collection processes to ensure timely payments from customers.
• Minimize Inventory Holding Costs: Use just-in-time inventory systems to reduce capital tied up in stock.
• Budgeting and Forecasting: Meticulously plan and forecast cash flows to anticipate shortfalls and surpluses, enabling proactive management.
• Optimize Operating Expenses: Continuously review and reduce unnecessary expenditures to improve profitability and cash reserves.

By focusing on these ethical and Sharia-compliant strategies, businesses can achieve sustainable growth and financial stability without resorting to interest-based finance.

This approach not only ensures adherence to religious principles but often fosters more robust, equitable, and resilient business models.

FAQ

What is Kriya.co?

Kriya.co is a financial technology platform that offers various business financing solutions, including “Embedded PayLater,” “Invoice Finance,” and “Working Capital Loans,” primarily designed to help businesses manage payments and access credit for growth.

Is Kriya.co ethical from an Islamic finance perspective?

No, Kriya.co is not considered ethical from an Islamic finance perspective because its core services involve interest-based lending and credit facilities, which fall under the prohibition of riba interest in Islam.

What is “Embedded PayLater” offered by Kriya.co?

“Embedded PayLater” allows businesses to offer their B2B customers flexible payment terms e.g., 30, 60, or 90 days, with Kriya typically facilitating the credit and managing the deferred payment collection.

How does “Invoice Finance” work with Kriya.co?

Invoice Finance from Kriya.co enables businesses to get immediate access to funds by drawing down a percentage of their outstanding trade invoices, with Kriya collecting the full amount from the customer later and deducting their fees.

What are “Working Capital Loans” from Kriya.co?

Working Capital Loans are direct loans or lines of credit provided by Kriya.co to businesses to fund day-to-day operations, purchase inventory, or manage short-term cash flow needs.

Why is interest riba forbidden in Islam?

Interest riba is forbidden in Islam because it is considered an exploitative practice that generates wealth without real economic contribution, unfairly shifting risk and burden onto the borrower, and promoting inequality.

What are some Sharia-compliant alternatives to Kriya.co’s services?

Sharia-compliant alternatives include Murabaha cost-plus sale for assets, Musharakah profit-and-loss sharing partnerships, Ijarah leasing, Qard Hasan benevolent loans, and equity-based financing like ethical venture capital or crowdfunding. Romencegardens.com Review

Can Kriya.co help improve a business’s cash flow?

From a conventional business standpoint, yes, Kriya.co’s services are designed to provide immediate liquidity and improve cash flow by converting receivables into cash or providing direct loans.

Does Kriya.co provide upfront pricing details on its website?

No, Kriya.co does not provide explicit upfront pricing tables on its website.

Pricing is typically determined after a consultation call, based on the specific needs, creditworthiness, and risk profile of the business.

What are the reported benefits of Kriya.co’s Embedded PayLater for businesses?

According to Kriya.co, offering Embedded PayLater can lead to an uplift in average order volume and increased B2B purchase frequency, with 82% of B2B buyers preferring suppliers who offer flexible payment terms.

How much credit has Kriya.co advanced since its launch?

Kriya.co reports having advanced over £3.7 billion in credit since its launch in 2012.

What is the reported impact of Invoice Finance on businesses using Kriya.co?

Kriya.co states that 60% of businesses utilizing invoice finance see operational expansion within their first year, implying improved capacity for growth due to better cash flow.

What percentage of businesses fail due to lack of working capital, according to Kriya.co?

Kriya.co cites that 29% of businesses fail due to a lack of working capital, highlighting the critical need for solutions like their working capital loans.

Is Kriya.co suitable for Muslim businesses?

No, Kriya.co is not suitable for Muslim businesses due to its reliance on interest-based financial instruments, which are prohibited in Islamic finance.

What kind of “success stories” does Kriya.co feature on its website?

Kriya.co features success stories from businesses like Halfords using Embedded PayLater, Northern Monk using Invoice Finance, and Fathers Farm Foods using Working Capital Loans, showcasing how their services allegedly helped these companies grow.

How long has Kriya.co been in operation?

Kriya.co was launched in 2012, indicating over a decade of operation in the financial services sector. All4mining.com Review

Does Kriya.co offer any direct equity investment solutions?

Based on the website’s description of their core services Embedded PayLater, Invoice Finance, Working Capital Loans, Kriya.co primarily focuses on debt-based financing and credit solutions, not direct equity investment.

Can a business cancel a Kriya.co subscription or free trial?

Kriya.co’s services are typically transaction-based or involve specific loan agreements rather than subscriptions or free trials.

Cancellation would involve fulfilling contractual obligations for outstanding loans or credit lines.

What happens if Kriya.co cannot help a business?

Kriya.co states on its website that if they cannot help a business, they will do their best to refer them to a trusted partner who can, with “no strings attached.”

Does Kriya.co have a blog?

Yes, Kriya.co has a blog that can be accessed via a link on their homepage, likely offering insights into business finance and their services.