Salam is not a device for creating a fixed return on cash. It is financing through a real purchase: the financier pays now, becomes entitled to real goods later, and bears the commercial task of receiving and disposing of those goods.
That asset connection is what makes Salam fundamentally different from an interest-bearing loan.
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Advance-Purchase Sale (سَلَم): Availability, Delivery Time and Financing Use
Salam is not a device for creating a fixed return on cash. It is financing through a real purchase: the financier pays now, becomes entitled to real goods later, and bears the commercial task of receiving and disposing of those goods.
That asset connection is what makes Salam fundamentally different from an interest-bearing loan.