ITFC may consider all Shari’ah modes of financing for trade operations.
The following modes of financing are the most widely used:
Under this mode, ITFC will purchase the commodities from the supplier and then sell them to the beneficiary with a deferred payment arrangement. The difference between the purchase price and the sale price is a reasonable markup added to the purchase price.
Under this mode, ITFC will purchase the commodities on behalf of the beneficiary and transfer the ownership immediately upon delivery to the beneficiary , this allows the beneficiary to provide the same asset as security. The sale price will usually be paid in installments. Under this mode of financing, the beneficiary is required to furnish a government, bank or any other guarantee acceptable to the ITFC.
This is a mode of trade financing for the promotion of trade in capital goods and enhancement of the production capacity. It is a contract for manufacturing goods and other assets in the which the manufacturer (under mandate of ITFC, as financier) agrees to provide the buyer with goods identified by description after they have been manufactured in conformity with the description within a certain time and pre-determined agreed price. This mode will enable the ITFC to finance working capital, which will contribute to the enhancement of production capacity in member countries.
In addition to these modes, ITFC is working on importing employing more modes of financing in the future such as Leasing, Bay Salam as well as Wakalah, Ja’ala for the financing of services.