Istisna (Manufacture-Sale) Financing

Istisna’ (Manufacture-Sale) Financing

It is trade-based financing mode wherein a customer requiring a commodity with clear specifications to be manufactured or developed approaches the bank for financing. The bank offers to have the said commodity manufactured or developed, for him and then, after adding its profit margin, sell it to him.

Unique Features and Benefits

  • Nothing is exchanged on spot or at the time of contracting;
  • Refer to finished products that will be manufactured or constructed as ordered by customers;
  • It is a pure forward contract where the obligations of both parties relate to the future;
  • Fast and easy approval yet after the banks engineers (marketing officers) recommendations;
  • Simple documentation but has to be verified by our experts;
  • The Bank may ask collateral for this kind of service.