Internationally, Islamic banks continue to develop economically sound financial packages to accommodate modern trends in the business world. Over the years financial products have been put in place very successfully in order to promote the growth and development of businesses.
Al Baraka Bank has kept pace with these developments and introduced financial products to suit local market conditions. These products now serve the business community by providing them with structured packages for the purchase of equipment and machinery.
Al Baraka Bank has successfully implemented the Murabaha sale with repayments on an instalment basis as a method of financing for all assets, which includes business equipment, industrial machinery and commercial vehicles.
In a Murabaha sale transaction ownership of the asset is transferred to the client immediately. Both parties agree at the outset of the Murabaha contract on the profit mark-up and the period and terms of the repayment. These terms cannot be changed for the duration of the transaction.
Structured packages are advantageous as they allow a business to plan better for growth, development and the upgrading of equipment. Since the price and instalments are fixed, forecasts and profitability are easier to predict regardless of market volatility which could otherwise impact on the cash flow of the business.
Feel free to speak to a financial consultant on the benefits of Al Baraka's asset-based finance packages.
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