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.
Benefits
Customer gets paid from the Bank before realization of the sale.
Features
The cost must be revealed;
The price and tenure of the lump-sum deferred payment must be agreed upon by the Bank and the customer;
The Bank appoints customer as an agent to sell on its behalf;