Salam for harvests
Buyers pay farmers in advance for specified produce delivered at harvest.
Real economy
Food and agriculture supply chains
Quality and origin run from farm to shelf; the financing should follow the same goods.
Food chains link farmers, processors, certification bodies, distributors and retailers, often across borders. Financing that follows the goods, such as salam for harvests and murabaha for inputs, keeps money and product in step. IslamicOpenFinance™ ties each financing step to the documents of the goods it finances.
Financial products
What you build on IslamicOpenFinance™
Input murabaha
The financier buys seed, feed or packaging and sells it to the producer on deferred terms.
Commodity-linked liquidity
Where the institution's Shariah board has approved it, tawarruq provides working capital with each commodity leg recorded.
Distributor finance
Distributors finance stock by murabaha against purchase orders from retailers.
Document trail
Purchase orders, delivery notes and certification documents are attached to the financing as evidence.
Value chain
The actors in this chain
IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.
FarmerProcessorCertification bodyDistributorRetailerIslamic bank
Typical flow
A typical flow, step by step
- Supply agreement
- Advance payment (salam)
- Harvest and delivery
- Processing
- Distribution
- Retail sale
- Settlement
Live demo
See it in the terminal
A commodity leg bought from broker A, sold on deferred terms and sold on to broker B, each step recorded (demo). Demo data
DemoAll institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.