Islamic Finance

Commercial lender enters Sharia-compliant market




Specialist lender Ortus Secured Finance has launched a Sharia-compliant short-term commercial facility.

Last month, Bridging & Commercial reported that Brexit would present an “opportunity” for Islamic finance by increasing engagement with developing Islamic markets. 

Ortus revealed that it had explored several ways of providing Sharia-compliant finance, which was flexible enough for the commercial market, after discussing the product with brokers and industry insiders.

The product is structured as a commodity murabaha – a method of commercial finance which does not involve lending money. Instead, Ortus will enter into a metals trade with its customer on deferred payment terms, with the settlement contract secured against the property – similar to a loan.

Following substantial legal advice, Ortus claims that the new product is transparent in respect of terms and pricing, while also meeting Islamic requirements. 

Jon Salisbury, managing director at Ortus Secured Finance, commented: “Our research shows that while Shariah-compliant loans are commonplace in the mainstream market, there seems to be a gap in the short-term commercial market.

“Innovation has also been a key part of our business philosophy.”

In September, Ortus raised an additional £20m of financing from investors to its fund, which was launched earlier this year.

The money is set to be lent to businesses across the UK, as well as to support commercial property ventures in Northern Ireland.

Ortus aims to treble the size of its lending book in Northern Ireland by the end of 2017.

1 Comments

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    Durgham shamot

    we are interested in obtaining a sharia compliance commercial borrowing . Regards, Durham Shamot

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