Sharia-Compliant Structuring
Is the business sound in substance, not just on paper?
One contract does not decide it. How the whole thing is put together does: who owns it, how it is financed, and what it does for its money. We look at all three, honestly.
Or call 020 3930 1088
Where we look
Three questions, in order
-
How is it owned?
Sole trader, company or LLP, and who really holds what. This is where undocumented partners and informal capital hide.
-
How is it financed?
The overdraft, the loan, the asset finance signed years ago. What exists, what it costs in both systems, and which alternatives are available at your scale.
-
What does it do for its money?
What the business sells, and what it earns in passing: interest on balances, commissions, income a scholar would question. Revenue as it is, not as the brochure describes it.
The honest part
Almost nothing changes overnight.
A business on conventional finance cannot refinance itself in a month, and a revenue line that pays wages cannot be switched off by decree. Advice that ignores this is a plan designed to be abandoned. Serious structuring is staged, written down and dated, so the direction of travel is real.
- Now. Changes available immediately, at little cost. Usually more than owners expect.
- At the next break. Renewals, refinancings and new ventures are the cheap moments to change course.
- Over time. The structural changes, sequenced so the business stays solvent while it turns.
- Recorded. A written plan that survives busy years and changing staff.
The scholarship behind it
Answers you can question
The Islamic side of this work is led by LawFiq’s Islamic Board under Shaykh Saad Al-Deen Al-Dhafiri, a graduate of the Shariah College of Al-Masjid an-Nabawi with a Master’s in Fiqh and Usul, working across the four Sunni schools and the AAOIFI standards. When we assess a financing or a revenue line, you are told which principle applies, where the schools differ, and why the advice lands where it does.
The legal mechanics sit with our advisers. Where regulated legal services are required, these are provided by our partner SRA-regulated law firm. We do not advise on tax, but we coordinate with your accountant so the plan works after tax as well as in principle.
Our work here is advisory: a considered assessment, the reasoning behind it, and a workable plan. If a bank, investor or counterparty asks for something more formal, raise it in the first conversation and we will tell you what we can and cannot provide.
Common questions
Asked by owners in your position
We have an existing bank loan. Can the business still become compliant?
The loan is a fact, and honouring it is itself required. The work is directional: keep current obligations, plan the refinancing for the loan’s natural end or an earlier sensible break, and stop the problem growing meanwhile. Most businesses make real progress within one refinancing cycle.
Is Islamic bank financing the only alternative?
No. Equity from partners on a profit-sharing basis, restructured supplier and customer terms, staged payments and retained earnings need no bank at all. Which mix fits depends on your numbers.
Do you advise on the tax side?
No. Tax advice belongs with your accountant or a tax adviser, and restructuring decisions should never be taken without it. We design the plan alongside them.
Related service
Book a consultation
Start with an honest picture.
Bring the accounts, the finance and the questions you have been putting off. You leave with a map and a realistic first step.
Or call 020 3930 1088