Is it permissible to finance the purchase of equipment from a third party (the supplier company) and pay for it in cash, then sell it to a second party (the beneficiary company) on credit with an added profit margin, provided that payment is made after receiving the amount from the state? And is it permissible to impose a penalty (a penalty clause) in case of delayed payment beyond the agreed-upon period? What is the Sharia-compliant solution for delayed payment in this case, or what is the Sharia-compliant method to complete the transaction if it is not permissible from the outset?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
The -compliant method of transaction is for the applicant to purchase the required devices, take ownership of them, and receive them, then sell them to the company in installments. This is known as "Murabaha for the one who commands the purchase." As for the method mentioned in the question, it is a forbidden usurious loan because the applicant did not purchase the devices and did not receive them, and it is not a real buying and selling transaction. Furthermore, imposing a late fee for non-payment is not permissible.
Summarized from the full answer at Ftawy · imported
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- 78780
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