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Factoring Halal or Haraam?

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Factoring Halal or Haraam?

Post  khalillaher on Sun Aug 29, 2010 5:02 pm

It is clear usury.

"Factoring is a financial transaction whereby a business sells its accounts
receivable (i.e., invoices) to a third party (called a factor) at a discount in
exchange for immediate money with which to finance continued business."

This is such a classic example of usury. The invoices are in fact debts. Selling
debts is clearly haram in itself. And discounting the debt is another step in
usury.


Khalil Laher

khalillaher

Posts : 132
Join date : 2010-08-29
Age : 30
Location : London

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