Stock murabaha
The bank buys the stock from the supplier, records ownership, and sells it to the SME on deferred terms.
Business
SME and trade finance
Small firms need working capital fast; sale-based finance needs the bank to own the goods first.
SMEs finance stock, raw materials and shipments through murabaha, salam, istisna and agency-based services. Each needs documents in the right order: purchase orders, invoices, ownership and delivery. IslamicOpenFinance™ links those documents to the contract so the financier decides on real transactions and the evidence is ready for audit.
Financial products
What you build on IslamicOpenFinance™
Salam for production
The buyer pays in advance for precisely specified goods delivered later, with delivery tracked against the contract.
Istisna for manufacturing
A manufacturer is financed through stage payments for a specified item, with each stage evidenced.
Wakalah trade services
The bank acts as agent for purchases or collections for a disclosed fee.
Kafalah guarantees
Guarantees for suppliers or tenders are issued and tracked with their expiry and claims.
Value chain
The actors in this chain
IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.
SMESupplierBuyerIslamic bankLogistics providerShariah Supervisory Board
Typical flow
A typical flow, step by step
- Purchase order
- Bank buys the goods
- Ownership recorded
- Sale to the SME
- Delivery
- Instalments
- Reconciliation
Live demo
See it in the terminal
Khuzama Foods finances inventory by murabaha (demo): the supplier invoice and ownership event come before the sale. 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.