Where Investors meet Entrepreneurs

The Trustees of 1st Ethical are able to facilitate the provision of Sharī‘ah-compliant finance (Mushārakah) to entrepreneurs needing funds to establish or grow their business. This finance is provided in exchange for our investors purchasing a share of the ownership of the business in the expectation of generating profits in a manner encouraged under Sharī‘ah. Our role in many ways resembles that of a ‘business angel’, and is not part of our charitable trust remit.

We focus solely on businesses which are UK based, requiring £100,000 to £500,000 of funding.

We Do:

1. - Share in the risks & rewards (profits & losses) of the business.
2. - Provide the investors and business with all relevant shareholder agreements etc prepared in a Sharī‘ah-compliant manner.
3. - Where applicable, apply for EIS relief on behalf of the investors which can lead to 20% of the cost of the investment being offset against tax due on other income.
4. - Prior to investment, provide where requested initial due diligence services.
5. - Post investment, provide where request ongoing wider business support services.

We Don’t:

1. - Provide a cost competitive alternative to a conventional bank loan (Mushārakah and interest-based finance are not designed to compete on a cost comparison basis).
2. - Invest in unethical sectors.
3. - Invest in businesses based outside the UK.
4. - Provide advice to investors as to the suitability of investing in any business – we facilitate an introduction between the investors and the business.
5. - Facilitate funding for property purchase / development projects.