Factoring Halal or Haraam?
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Factoring Halal or Haraam?
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
"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 : 36
Location : London
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