Islamic finance Part 2

What is an Islamic letter of credit?

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An Islamic letter of credit is a document issued by a bank that guarantees payment to a seller on behalf of a buyer in a Shariah-compliant manner.

What is an Islamic trust receipt?

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An Islamic trust receipt is a financing arrangement where a bank purchases goods on behalf of a buyer and holds the goods as a trustee until the buyer repays the bank.

What are Islamic accepted bills?

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Islamic accepted bills are short-term financial instruments issued by a seller that represent an obligation to pay a specified amount on a future date.

What is an Islamic bank guarantee?

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An Islamic bank guarantee is a commitment made by a bank to guarantee payment or performance obligations of one party to another in compliance with Shariah principles.

What is an Islamic shipping guarantee?

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An Islamic shipping guarantee is a form of guarantee provided by a bank to ensure that goods are delivered as per the agreed terms and conditions in a Shariah-compliant manner.

Which Islamic trade financing facility provides a guarantee of payment to a seller?

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Islamic bank guarantee.

Which Islamic trade financing facility involves the bank purchasing goods on behalf of a buyer?

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Islamic trust receipt.

Which Islamic trade financing facility represents an obligation to pay a specified amount on a future date?

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Islamic accepted bills

Which Islamic trade financing facility ensures the delivery of goods as per agreed terms?

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Islamic shipping guarantee.

What is the main purpose of an Islamic letter of credit?

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To provide a guarantee of payment to the seller on behalf of the buyer.