Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects

Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects

Debt financing arrangements utilised in financing trade goods and produce ready for disposal, usually based on structures adapted from factoring mechanisms, involve shortcomings from a shariah as well as a commercial perspective. Financing MMEs that have stocks ready for disposal could be advantage...

Full description

Bibliographic Details
Main Author: Sadique, Muhammad Abdurrahman
Format: Article
Language:English
Published: Islami Bank Training and Research Academy 2010
Subjects:
HG1501 Banking
KBP173.25 Islamic law and other disciplines or subjects
Online Access:http://irep.iium.edu.my/4360/
http://irep.iium.edu.my/4360/
http://irep.iium.edu.my/4360/1/v6_n1_article5.pdf
id iium-4360
recordtype eprints
spelling iium-43602011-10-13T07:54:35Z http://irep.iium.edu.my/4360/ Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects Sadique, Muhammad Abdurrahman HG1501 Banking KBP173.25 Islamic law and other disciplines or subjects Debt financing arrangements utilised in financing trade goods and produce ready for disposal, usually based on structures adapted from factoring mechanisms, involve shortcomings from a shariah as well as a commercial perspective. Financing MMEs that have stocks ready for disposal could be advantageously carried out on equity basis. Measures that result in altering the agreed profit sharing ratio merely in view of the financial interests of one party could affects the consistency of equity relationships. Recognising additional costs incurred during the equity relationship as infusion of additional capital could lead to anomalous outcomes. Treating such expenses as debts incurred by the venture for which the partners are jointly liable could be more preferable from a shariah perspective. In financing asset procurement for MMEs, debt instruments appear especially inadequate. Adopting the equity structure as a comprehensive scheme embracing all stages from procurement of assets until their disposal, could help rectify some shortcomings inherent to debt financing arrangements. Islami Bank Training and Research Academy 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/4360/1/v6_n1_article5.pdf Sadique, Muhammad Abdurrahman (2010) Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects. Journal of Islamic Economics, Banking and Finance, 6 (1). pp. 127-142. ISSN 2070-4658 http://www.ibtra.com/pdf/journal/v6_n1_article5.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
KBP173.25 Islamic law and other disciplines or subjects
spellingShingle HG1501 Banking
KBP173.25 Islamic law and other disciplines or subjects
Sadique, Muhammad Abdurrahman
Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
description Debt financing arrangements utilised in financing trade goods and produce ready for disposal, usually based on structures adapted from factoring mechanisms, involve shortcomings from a shariah as well as a commercial perspective. Financing MMEs that have stocks ready for disposal could be advantageously carried out on equity basis. Measures that result in altering the agreed profit sharing ratio merely in view of the financial interests of one party could affects the consistency of equity relationships. Recognising additional costs incurred during the equity relationship as infusion of additional capital could lead to anomalous outcomes. Treating such expenses as debts incurred by the venture for which the partners are jointly liable could be more preferable from a shariah perspective. In financing asset procurement for MMEs, debt instruments appear especially inadequate. Adopting the equity structure as a comprehensive scheme embracing all stages from procurement of assets until their disposal, could help rectify some shortcomings inherent to debt financing arrangements.
format Article
author Sadique, Muhammad Abdurrahman
author_facet Sadique, Muhammad Abdurrahman
author_sort Sadique, Muhammad Abdurrahman
title Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
title_short Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
title_full Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
title_fullStr Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
title_full_unstemmed Financing trade asset procurement and disposal on joint equity basis for MMES: an analysis of some vital Shariah and operational aspects
title_sort financing trade asset procurement and disposal on joint equity basis for mmes: an analysis of some vital shariah and operational aspects
publisher Islami Bank Training and Research Academy
publishDate 2010
url http://irep.iium.edu.my/4360/
http://irep.iium.edu.my/4360/
http://irep.iium.edu.my/4360/1/v6_n1_article5.pdf
first_indexed 2023-09-18T20:12:33Z
last_indexed 2023-09-18T20:12:33Z
_version_ 1777407574081011712

Similar Items