Bai' Al Dayn refers to the sale of a debt arising from trade and services transaction in the form of a deferred payment sale. The customer sells this debt to the Bank at a discount.
Features
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The cost must be revealed; |
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The price and tenor of the lump-sum deferred payment must be
agreed upon by the Bank and customer; |
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The Bank appoints customer as an agent to sell on its behalf; |
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Only trade transaction on usance term is allowed; |
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Financing for finished goods. |
Benefits
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Customer gets paid from the Bank before realization of the sale. |
