Term Financing (Partnership Based)

In the business context means a joint enterprise in which all the partners share the profit or loss of the joint venture based on the concept of Musharaka. Musharaka is a partnership / joint enterprise where the partners share the profit or loss of the joint venture.

Local Musharaka : If a customer wants to finance his entire business by Amãna Bank a Local Musharaka financing can be used.

Transaction Musharaka : Transaction Musharaka will only be used for a particular transaction of a company.

• Both bank and customer will contribute capital towards the Musharaka transaction.
• The ratio of profit distribution must be agreed at the time of execution of the contract.
• The Bank will act as the sleeping partner and customer will be the main working partner of the partnership. A Bank representative will be observing the activities of the business.
• Any genuine losses occurred by the business will be borne by the Bank and customer according to the capital contribution ratio.
• If any losses occurred due to negligence of the customer, the customer has to bare the total loss.