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Murabahah Working Capital Financing-i (MWCF)

Al-Murabahah is a “cost-plus” sale contract. It is a facility granted to customers for financing their short term working capital requirement by way of lump sum deferred payment cost plus profit.

Financing

Murabahah Working Capital Financing-i (MWCF)

Al-Murabahah is a “cost-plus” sale contract. It is a facility granted to customers for financing their short term working capital requirement by way of lump sum deferred payment cost plus profit.

Benefits

Advance made by the Bank on behalf of buyer to pay the seller

Buyer pays the Bank on deferred payment term

Features

The cost must be revealed

The price and tenure of the lump-sum deferred payment must be agreed upon by the Bank and the customer

The Bank appoints customer as an agent (Al-Wakalah) to purchase on its behalf

Marginal deposit may be imposed

Trade transactions for sight (D/P) only are allowed

Financing for item of saleable value; e.g. purchase of stock and inventories, spares and replacements, semi-finished goods and raw materials

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2024-11-22 08:36:12