Working Capital Finance

Successful businesses often experience considerable pressure on available finances due to the timing difference of cash inflows and outflows, up-gradation of existing facilities and business expansion. We have a range of Shari’ah Compliant Principles financing options available, in order to meet your specific short-term or long-term working capital needs.

Murabaha
If you are looking at financing in order to purchase raw materials, goods and merchandising as well as export and import financing, then Murabaha is the best suited option for you. Murabaha is a commonly known Working Capital Finance, widely used by Islamic Banks. Murabaha refers to a sale where the seller discloses the cost of the commodity and the amount of profit being charged. Thus, it is not a loan provided on interest, but is in fact, a sale of commodity at profit. The mechanism of Murabaha is that upon your request, the Bank purchases the commodity as per your requirement and sells it to you at a cost-plus-profit basis. Therefore, the Bank, rather than advancing money to you, buys the goods from a third party and sells them to you on profit.