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

  • Provide corporates to match their Payables Finance and extend payment terms with regional and international suppliers.

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

  • Conducting business in a fair and transparent manner. Guiding through to ensure full understanding of risks and costs.

  • Clarity on maximum amount payable, customers can be assured the amount they pay will never exceed a stipulated maximum amount.

Ready to join the FinShare solution?