Islamic Receivable Finance

What is Islamic Receivable Finance?

Islamic Receivable Finance (IRF), known as MURABAHA derivative against account receivables, is a financial instrument designed to provide working capital finance to customer via commodity transactions while prohibiting the payment or receipt of interest (RIBA) under Sharia compliant guiding principles and guided by Sharia scholars.

IRF is a program anchored by Supplier that would like to finance under Islamic Ruling. With the Cost-Plus Model, Suppliers can finance against receivables optionally confirmed by Buyers and backed by commodity transaction (purchase then sale of commodify involving commodity Brokers).



a) Supplier uploads invoice

b) Optionally, Buyer confirms invoice

2. Supplier requests discount


a) Bank purchases commodity from Broker 1

b) Bank resells the commodity to Broker 2

c) Bank finances Supplier via FinShare


a) Supplier repays finance, or

b) Buyer pays invoice

Benefits of the FinShare Solution

  • Contributes to financial transactions backed by genuine trade or business related activities that boost the economy governed by Islamic principles.

  • Provide corporates with financial flexibility by benefiting from reliable and revolving liquidity facility.

  • Provides Suppliers with immediate access to cash by selling their account receivables offered at reasonable discounts.

  • Provides Bank with opportunity to recover lost from late payment while at the meantime to benefit the society with charity contribution.

  • Greater transparency which make everything clear-cut and easy to understand with little room for surprise payments or hidden fees.

Ready to join the FinShare solution?