Islamic Supplier Finance

What is Islamic Supplier Finance?

Islamic Supplier Finance (ISF), known as MURABAHA derivative against confirmed payables, is a financial instrument designed to facilitate cash advances to a supplier via commodity transactions while prohibiting the payment or receipt of interest (RIBA) under Sharia compliant guiding principles and guided by Sharia scholars.

ISF is a program anchored by Buyer that its trading partner gets finance against confirmed payables under the Buyer’s credit via Cost-Plus Model complied with Islamic ruling. Additional level of credit control over the individual supplier level is also allowed with flexible limit control.



a) Supplier uploads invoice with mandatory buyer confirmation, or

b) Buyer uploads confirmed payables

2. Supplier request discount


a) Bank purchases commodity from Broker 1

b) Bank resells the commodity to Broker 2

c) Bank advances cashes to Supplier via FinShare

4. Buyer pays at maturity

Benefits of the FinShare Solution

  • Allow corporates to manage their Payables Finance and extend payment terms with regional and international suppliers.

  • Facilitate trade and improve payment and financial terms between corporates and their supplier network.

  • Conduct business in a fair and transparent manner. FinShare will guide users through to ensure full understanding of risks and costs.

  • 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?