
What is Pre-Factoring
Pre-Factoring represents a financial transaction and a distinct facility where a Factoring Company provides advance financing to a contractor or vendor, facilitating the financing of future product projects. Usually, contractors will use this financial resource to produce and deliver goods or services to their customers (Paymaster).
Tawarruq (Commodity Murabahah)
Tawarruq involves the exchange of Shariah-compliant commodities that serve as the basis for financing arrangements. It is a sale that uses the price increase method, with the customer (Contractor/Vendor) making payments in an agreed period on a delayed basis. Transactions are structured through two or more sales contracts.