LessonsCost-Plus Financing (مرابحة): From Sale to Banking StructureQuiz

The cleanest method is for the financier to purchase directly from the supplier, take possession, and then sell to the client. Where genuinely impractical, the client may act as purchasing agent, but his agency role must remain distinct from his later role as buyer.

This rule is especially important in financing because cost-plus sale (مرابحة) is valid only when the financing remains a real sale. The sequence of ownership, possession, risk and final sale must therefore be visible in the transaction.

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Direct Purchase Is the Preferred Method

Cost-Plus Financing (مرابحة): From Sale to Banking Structure

The cleanest method is for the financier to purchase directly from the supplier, take possession, and then sell to the client. Where genuinely impractical, the client may act as purchasing agent, but his agency role must remain distinct from his later role as buyer.

This rule is especially important in financing because cost-plus sale (مرابحة) is valid only when the financing remains a real sale. The sequence of ownership, possession, risk and final sale must therefore be visible in the transaction.