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