Tuesday, 12 November 2019, 15 Rabiulawal 1441H Solat Time:

Business Financing-i (Term Financing for Work Capital)

Business Financing-i is an exclusive financing solution granted to a business entity to finance its working capital requirement. Essentially, it is a specific form of term financing based on acceptable Shariah contracts designed to alleviate the shortfall in customer’s cash flow; to enable companies to fund their business for any purposes.



  • Pricing can be equally competitive as compared to conventional Term Loan. Pricing is fixed (pre-determined upon drawdown) and thus provides customer with a hedge against future rates movement. It can be amortized on monthly or quarterly basis to match the cashflow or revenue stream of the customer

  • Efficient for future upgrades and replacement

  • Leasing-i and Hire Purchase-i structures are normally on an amortized basis. This essentially provides customers with an avenue to improve and better manage cash flow

  • No additional collateral required for Leasing-i and Hire-Purchase-i

  • Matching of term funding to long-term asset life/contract, can free up its traditional funding sources or cash balances/excess cash for other meaningful purposes such as business expansion

  • Can be self-liquidating as the asset generates income to defray rental/installment costs

  • For equipment/machinery supplied by foreign supplier/vendor, a specific Letter of Credit (LC-i) can be arranged to facilitate the importation. Subsequently, the LC-i will be converted into the respective Asset Based Financing via Hire Purchase-i, Leasing-i & Bai’ Bithaman Ajil

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