Finance Trade Through a Structured Islamic Arrangement

Tijarah Finance enables businesses to purchase goods through a trade-based arrangement with a participating Islamic financial institution, under agreed sale and deferred payment terms.

Explore Tijarah Finance

Connect Business Purchases to Trade-Based Financing

Tijarah Finance supports businesses that need goods for their operations or supply chains. Under Fauree's published Tijarah structure, the participating financier purchases the requested goods and sells them to the customer at a disclosed profit margin, payable in instalments.

Fauree provides the digital workflow connecting business requests, purchase records, financing activity and repayment tracking. The participating institution makes the financing decision and is responsible for the contractual arrangement. Shariah compliance is determined by the institution and its Shariah board.

Key Benefits Across The Ecosystem

Finance Goods Purchases

Request funding for goods required for business operations.

Understand the Sale Terms

Review the disclosed profit margin and agreed instalment schedule.

Connect Trade to Financing

Link purchase details and transaction records to the financing workflow.

Tijarah Finance Process Flow

Shariah compliant, from agreement to settlement.

STEP 1 · SUPPLIER → BANKSupplier and Bank enter into a Master Goods Finance Agreement
STEP 2 · SUPPLIER → BANKSupplier and Bank sign the Agency Agreement
STEP 3 · BUYER → SUPPLIERBuyer raises a Purchase Order
STEP 4 · SUPPLIER → BANKSupplier raises an Offer to Sell (OTS) to the Bank
STEP 5 · BANK → SUPPLIERBank approves the Offer to Sell (OTS)
STEP 6 · FAUREE PLATFORM → BANKTijarah contract is generated digitally
STEP 7 · FAUREE PLATFORM → SUPPLIERGoods Receipt Note is generated digitally for the supplier via the Fauree platform
STEP 8 · SUPPLIER → FAUREE PLATFORMSupplier acknowledges the GRN
STEP 9 · SUPPLIER → BUYERSupplier delivers goods with reference to PO and DO
STEP 10 · BUYER → FAUREE PLATFORMBuyer acknowledges goods (invoice)
STEP 11 · BANK → SUPPLIERBank disburses funds to the supplier
STEP 12 · BUYER → BANKOn the due date, Buyer settles with the Bank

The Tijarah Finance Workflow

Tijarah Finance connects businesses, suppliers and participating Islamic financial institutions through a structured, Shariah-compliant goods purchase and sale process.

Goods PurchaseThe financial institution purchases the goods requested by the customer.

Ownership TransferThe financial institution takes ownership of the goods before selling them to the customer.

Sale to CustomerThe goods are sold to the customer at an agreed price, including a disclosed profit margin.

Agreed Payment TermsThe customer repays the agreed sale price in instalments, as defined in the transaction terms.

Profit TransparencyThe cost and profit margin are disclosed upfront before the sale is agreed.

Asset-Backed TransactionThe financing is linked to the underlying goods being purchased and sold.

Shariah-Based StructureThe transaction follows the approved Shariah structure of the participating Islamic financial institution.

01Goods PurchaseThe financial institution purchases the goods requested by the customer.
02Ownership TransferThe financial institution takes ownership of the goods before selling them to the customer.
03Sale to CustomerThe goods are sold to the customer at an agreed price, including a disclosed profit margin.
04Agreed Payment TermsThe customer repays the agreed sale price in instalments, as defined in the transaction terms.
05Profit TransparencyThe cost and profit margin are disclosed upfront before the sale is agreed.
06Asset-Backed TransactionThe financing is linked to the underlying goods being purchased and sold.
07Shariah-Based StructureThe transaction follows the approved Shariah structure of the participating Islamic financial institution.