Lendaly.com.au Review

Based on looking at the website Lendaly.com.au, it appears to be a platform that aims to match Australian businesses with various lenders for financing solutions. However, a significant concern arises for those seeking ethically sound financial practices, particularly from an Islamic perspective. The core service revolves around connecting users with traditional bank and non-bank lenders, which invariably involves interest-based loans and financial products. From an Islamic finance viewpoint, any transaction involving riba (interest) is strictly prohibited. Therefore, while the platform aims to streamline the process of securing business finance, its fundamental model is incompatible with Islamic principles. This is not about the platform’s efficiency, but rather the underlying nature of the financial instruments it facilitates.

Overall Review Summary:

• Service Model: Business finance matching platform.
• Target Audience: Australian businesses of all sizes.
• Key Promise: Connects businesses with 70+ lenders for various funding types.
• Credit Impact: Claims “soft credit check” that doesn’t impact credit score.
• Revenue Model: Gets paid by lenders only if a finance option is found, no fees to the user.
• Ethical Consideration (Islamic Finance): Fundamentally problematic due to reliance on interest-based loans (riba).
• Recommendation: Not recommended for those adhering to Islamic financial principles due to the involvement of interest.

The website touts convenience, speed, and a wide array of options, claiming to simplify the often-complex process of securing business finance. They highlight their AI-powered matching technology and a commitment to transparency, stating they don’t get paid to rank products higher and don’t sell user data. They also address common pain points like financial jargon and the difficulty small businesses face in finding funding. While these aspects might seem appealing on the surface, the crucial point of contention for a Muslim audience is the nature of the “finance options” themselves. These are overwhelmingly conventional loans, which inherently involve riba. This makes Lendaly.com.au an unsuitable option for businesses and individuals committed to Sharia-compliant financial practices. The pursuit of quick funding should never come at the expense of ethical and religious principles.

Here are some alternatives for ethical business support and financing that align with Islamic principles:

• Islamic Business Finance Platforms: While specific direct alternatives to Lendaly.com.au in the Australian Islamic finance space for business matching might be limited, seeking out dedicated Islamic finance institutions or platforms is the most direct route. These typically offer murabaha (cost-plus financing), musharaka (partnership financing), or ijara (leasing) arrangements, which are interest-free.
• Halal Investment Funds: These funds invest in Sharia-compliant businesses and assets, providing a way to grow capital ethically. While not direct business loans, they can offer opportunities for investment or even partnership depending on their structure.
• Ethical Business Consulting Services: Instead of just focusing on finance, consider consultants who specialise in ethical business models and can help structure your operations to attract Sharia-compliant capital or identify alternative funding.
• Crowdfunding Platforms (Sharia-compliant): Some crowdfunding platforms are specifically designed to be Sharia-compliant, where investors provide capital in exchange for equity or profit-sharing, avoiding interest.
• Community-Based Lending Groups: Explore local community initiatives or groups that might offer interest-free loans (Qard Hassan) or co-operative financing models based on mutual support. These are often small-scale but can be invaluable.
• Venture Capital (Equity-Based): Seek out venture capital firms that focus on equity investments, where they take a share in your business in return for funding, rather than providing an interest-bearing loan. This aligns with Islamic principles of risk-sharing.
• Bartering and Trade Networks: While old-school, formal or informal bartering networks can help businesses acquire necessary goods or services without requiring direct cash or loans, fostering a system of mutual benefit.

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.

Lendaly.com.au Review: The Business Finance Landscape in Australia

When you’re running a business in Australia, getting your hands on the right finance can feel like trying to find a needle in a haystack. Lendaly.com.au pitches itself as the solution, a digital platform designed to connect businesses with a wide array of lenders. They claim to streamline the process, cutting through the jargon and delivering pre-qualified loan options. But let’s peel back the layers and see what’s really under the bonnet, especially from an ethical standpoint that’s important to many Australian business owners.

Understanding Lendaly.com.au’s Core Offering

Lendaly.com.au positions itself as Australia’s number one business finance matching platform. Their value proposition hinges on simplicity and choice: one application, over 70 lenders, and multiple offers in minutes. They aim to solve a common pain point for businesses – the arduous task of finding suitable funding.

• One Application, Multiple Options: The website states that by filling out a single application, businesses can access options from over 70 bank and non-bank lenders. This is presented as a major time-saver compared to approaching individual lenders.
• AI-Powered Matching: Lendaly claims to use AI technology to ensure businesses are matched with the “right lender the first time around,” suggesting a sophisticated algorithm behind the scenes.
• Focus on Australian Businesses: The platform clearly targets businesses with an AU-based HQ, a trading history of 1 year+, a monthly turnover of $10K+, and funding requirements between $10K and $2M. This narrows down their user base specifically to established Australian entities.

The Ethical Implications of Conventional Business Finance

This is where the rubber meets the road for those seeking Sharia-compliant business practices. While Lendaly.com.au offers a convenient service, its core function is to facilitate access to conventional interest-based loans. In Islamic finance, the charging and receiving of interest (riba) is strictly prohibited. This prohibition is not merely a formality; it’s a foundational principle aimed at promoting justice, equity, and shared risk in economic transactions.

• The Prohibition of Riba: The Quran and Sunnah explicitly condemn riba. This prohibition is comprehensive, applying to both excessive and nominal interest. The underlying philosophy is that money should not generate money purely through its existence; rather, wealth should be generated through productive effort, trade, and shared risk.
• Impact on Business Ethics: For a Muslim business owner, engaging in interest-based transactions means compromising a core tenet of their faith. This extends beyond personal morality to the very structure and sustainability of their business. While conventional finance offers quick access to capital, it can also lead to debt cycles and an imbalance of risk, where the lender is guaranteed a return regardless of the business’s success or failure.
• Alternative Models: Islamic finance offers alternatives like Murabaha (cost-plus sale), Musharaka (partnership), Mudarabah (profit-sharing), and Ijara (leasing), which are designed to avoid interest and promote ethical, risk-sharing business relationships. These models ensure that both parties share in the profit and loss, fostering a more equitable economic environment.

Lendaly.com.au’s Operating Model: A Closer Look

Lendaly.com.au explains its process in three simple steps: check matched lenders, select an option, and get funded. They also clarify their revenue model, stating they only get paid if they successfully connect a business with a finance option, and they don’t charge users any fees.

• The Matching Process:
  1. Check matched lenders: Users answer a few questions to see pre-qualified loan options.
  2. Select an option: Users compare and choose the right lender.
  3. Get funded: Lendaly guides users through the loan process.
• Revenue Model: The platform states, “We want this to be a ‘win-win’ situation. So we only get paid if we bring you value in the form of finding a business finance option that works for you. Not by selling your data. The compensation we receive does not impact how and where lenders appear on our site and Lendaly charges you no fees of any sort.” This transparency regarding their payment structure is a positive point, ensuring that their recommendations are not skewed by higher commissions.
• “Soft Credit Check”: They claim a “soft credit check” is performed to provide personalised options, which “does not impact your credit score.” This is a common practice among comparison sites to give users an idea of their eligibility without affecting their credit profile. According to the Australian Government’s Moneysmart website, a soft credit check (or enquiry) typically doesn’t impact your credit score, unlike a hard credit check.

Why Conventional Lending is a Concern for Muslims

The entire premise of Lendaly.com.au, which is to connect businesses with conventional lenders offering various forms of debt, presents a significant hurdle for those committed to Islamic finance. The problem isn’t with the platform’s efficiency, but with the fundamental nature of the financial products it facilitates.

• Debt-Based Economy: Conventional finance largely operates on a debt-based system, where money is created through lending and interest is a central component. This can lead to economic instability, inflation, and social inequality.
• Lack of Risk Sharing: In an interest-based loan, the lender is guaranteed a return regardless of the borrower’s success or failure. This contrasts sharply with Islamic principles, where risk and reward are shared between parties, encouraging more responsible and productive investments.
• Moral Hazard: The system can incentivise excessive borrowing and lending, as long as the interest can be collected. This can lead to businesses taking on more debt than they can sustainably manage, increasing the risk of bankruptcy. Data from the Australian Bureau of Statistics (ABS) often shows that small businesses face significant challenges with cash flow and debt management. In the financial year 2022-23, approximately 20% of Australian businesses ceased operating, with financial difficulties being a primary factor (Source: ABS Business Indicators, Australia).

Lendaly.com.au vs. Islamic Finance Principles

When you stack Lendaly.com.au against Islamic finance principles, the incompatibility becomes clear. It’s not about the user experience or the platform’s technology; it’s about the very foundation of the financial transactions.

• The Core Conflict: Lendaly.com.au connects businesses with sources of riba. Islamic finance actively seeks to eliminate riba and promote alternative, ethical modes of financing such as:
  • Murabaha (Cost-Plus Financing): The financier buys an asset and sells it to the client at a mark-up. The client pays in instalments, avoiding interest.
  • Musharaka (Partnership): Two or more parties contribute capital to a venture and share profits and losses according to a pre-agreed ratio.
  • Mudarabah (Profit-Sharing): One party provides capital (Rabb-ul-Maal), and the other provides entrepreneurial skill and labour (Mudarib). Profits are shared, but losses are borne by the capital provider, except in cases of negligence by the Mudarib.
  • Ijara (Leasing): An asset is leased to a client for a specified period for a fixed rental, with the option for the client to purchase the asset at the end of the term.
• Ethical Framework: Islamic finance is driven by a comprehensive ethical framework that promotes social justice, equitable distribution of wealth, and prohibition of speculative and harmful transactions. This is in stark contrast to conventional finance, which, while regulated, often prioritises profit maximisation above all else.
• Long-Term Impact: Adhering to Islamic financial principles is seen as not just a religious obligation but also a pathway to more stable and just economic growth. Businesses that operate on these principles often foster greater trust within their communities and avoid the pitfalls of excessive debt.

Alternative Pathways for Ethical Business Funding in Australia

If Lendaly.com.au is off the table due to its reliance on interest, what are the viable options for Australian businesses seeking ethical, Sharia-compliant funding? While the Islamic finance landscape in Australia is still developing compared to some other regions, options do exist.

• Islamic Banks and Financial Institutions: Look for specific Islamic banks or financial windows within conventional banks that offer Sharia-compliant business financing products. While there might not be as many options as conventional banks, their offerings are structured to avoid riba. Examples globally include Islamic Bank of Britain, Kuwait Finance House, and generally financial institutions in Malaysia or UAE that sometimes have a presence or offer services to Australian entities.
• Private Equity and Venture Capital (Equity-Based): Seek out investors, private equity firms, or venture capitalists who are willing to invest in your business in exchange for equity, rather than providing an interest-bearing loan. This aligns perfectly with Islamic principles of risk-sharing.
• Government Grants and Programs: The Australian government often offers grants and funding programs for small businesses, startups, and specific industries. These funds are typically non-repayable, making them a Sharia-compliant option. For example, the business.gov.au Grants & Programs section is an excellent starting point.
• Crowdfunding (Sharia-Compliant Platforms): Explore crowdfunding platforms that specifically operate on Sharia-compliant models, such as equity crowdfunding where investors buy shares in your company, or profit-sharing models. While not as widespread as conventional crowdfunding, their numbers are growing.
• Community and Cooperative Funds: Investigate local community funds or cooperative models where members pool resources to provide interest-free loans (Qard Hassan) to businesses or individuals within the community. These are often grassroots initiatives but can be incredibly supportive.
• Bootstrapping and Self-Funding: Where possible, funding your business through retained earnings, personal savings, or revenue generated from sales can be the most ethical and self-reliant approach, avoiding external debt altogether.
• Asset-Based Financing (Non-Interest): Instead of loans, consider arrangements where you finance the acquisition of specific assets (e.g., equipment) through an Islamic leasing (Ijara) or cost-plus (Murabaha) arrangement with an ethical financier.

Why Avoiding Riba is Essential for Long-Term Business Success (from an Islamic Perspective)

Beyond the religious obligation, many scholars and economists argue that avoiding riba leads to more stable, equitable, and sustainable economic systems.

• Stability: An interest-free system discourages excessive debt and speculative bubbles, leading to greater economic stability. Businesses are less prone to collapse under the weight of accumulating interest payments.
• Equity: It promotes a more equitable distribution of wealth by ensuring that returns are tied to real economic activity and shared risk, rather than simply the ownership of capital. This encourages productive investment over passive income from debt.
• Real Economy Focus: Islamic finance directs investment towards the real economy – tangible assets, productive enterprises, and job creation – rather than purely financial transactions. This fosters genuine economic growth.
• Social Responsibility: The ethical framework of Islamic finance encourages businesses to operate with social responsibility, considering the welfare of employees, customers, and the community. This holistic approach can lead to more resilient and respected businesses. According to a study published in the Journal of Islamic Economics, Banking and Finance, Islamic financial institutions generally exhibit greater stability during financial crises due to their asset-backed nature and risk-sharing principles (Source: Journal of Islamic Economics, Banking and Finance, Vol. 13, No. 1, 2017).

FAQ

What is Lendaly.com.au?

Lendaly.com.au is an online platform based in Australia that connects businesses seeking finance with a network of over 70 bank and non-bank lenders. It aims to simplify the process of securing business loans by allowing users to submit one application and receive multiple pre-qualified offers.

Is Lendaly.com.au suitable for all Australian businesses?

Yes, Lendaly.com.au states it is designed for businesses of all sizes in Australia, from small main street operations to large enterprises, provided they meet specific criteria like a trading history of 1 year+, monthly turnover of $10K+, and funding requirements between $10K and $2M. Abc-air.com.au Review

Does Lendaly.com.au charge fees to businesses?

No, Lendaly.com.au states that it does not charge any fees to businesses using its platform. They get paid by the lenders only if they successfully facilitate a finance option for the user.

Will applying through Lendaly.com.au affect my credit score?

Lendaly.com.au claims it may perform a “soft credit check” to provide personalised loan options, and this process does not impact your credit score.

What types of funding does Lendaly.com.au offer?

Lendaly.com.au states it offers access to seven types of funding from over 70 bank and non-bank lenders. Based on their model, these are typically conventional interest-based business loans, lines of credit, or other debt financing options.

How quickly can I get matched with lenders on Lendaly.com.au?

The website suggests that users can “match with business lenders in minutes” and quickly see pre-qualified loan options after completing a single application.

What makes Lendaly.com.au different from other comparison sites?

Lendaly.com.au asserts that it offers a more streamlined application process where you instantly see which lenders you pre-qualify for and at what cost, providing an “apples to apples comparison” rather than generic information.

Is Lendaly.com.au Sharia-compliant?

No, Lendaly.com.au is not Sharia-compliant. Its core service involves connecting businesses with conventional lenders who offer interest-based loans, which is prohibited (riba) in Islamic finance.

What are the main ethical concerns with Lendaly.com.au from an Islamic perspective?

The primary ethical concern is the facilitation of interest-based financial products (riba). Islamic finance strictly prohibits interest due to its perceived unfairness, lack of risk-sharing, and potential to create economic instability.

Can I find Islamic business finance alternatives in Australia?

Yes, while the market is smaller, you can seek out Islamic banks or financial institutions, explore Sharia-compliant crowdfunding platforms, look for equity-based investors, or investigate government grants that do not involve interest.

What is riba and why is it forbidden in Islam?

Riba refers to interest or usury, and it is strictly forbidden in Islam. It is considered exploitative because it represents a guaranteed return on money without corresponding risk or productive effort, promoting an unjust distribution of wealth.

How does Islamic business finance work without interest?

Islamic business finance models replace interest with ethical, risk-sharing mechanisms. Examples include Murabaha (cost-plus sale), Musharaka (partnership with profit/loss sharing), Mudarabah (profit-sharing based on capital and effort), and Ijara (leasing). Forestwoodinstruments.com.au Review

Is equity financing considered permissible in Islam?

Yes, equity financing where investors take a share in the business and share in its profits and losses is generally considered permissible and encouraged in Islam, as it aligns with the principle of shared risk.

Does Lendaly.com.au sell my data?

Lendaly.com.au explicitly states, “Not by selling your data,” indicating a commitment to not selling user information to third parties.

How can I contact Lendaly.com.au if I have questions?

The website has a “Contact us” link, which likely leads to a contact form or provides contact details for inquiries.

Are customer testimonials on Lendaly.com.au trustworthy?

Testimonials like “Lendaly was a real game-changer for our small business” are typical marketing tools. While they reflect positive experiences, potential users should conduct their own due diligence, especially concerning the ethical implications of the financial products.

What should an Australian Muslim business owner consider when seeking finance?

An Australian Muslim business owner should prioritise sources of finance that are Sharia-compliant, meaning they avoid riba and engage in ethical, risk-sharing transactions. This includes exploring Islamic finance institutions, equity partners, or non-repayable grants.

How do I cancel a Lendaly.com.au application or inquiry?

While the website doesn’t explicitly detail a cancellation process, typically, if you haven’t finalised a loan agreement, you can simply cease communication with the matched lenders. For data privacy, you might need to contact Lendaly.com.au’s support directly.

What is the typical funding requirement for businesses using Lendaly.com.au?

Lendaly.com.au indicates that they cater to businesses with funding requirements ranging from $10,000 to $2,000,000.

What are the key criteria for a business to be eligible for Lendaly.com.au’s service?

According to the website, eligible businesses must have a trading history of 1 year+, a monthly turnover of $10,000+, and be an AU-based HQ.

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