Some Types Of Islamic Financing And Their Benefits – In an era where jobs are so hard to find, while life must go on, some of us dare to open a business. By opening a business, there is hope to continue to earn income and even enlarge the scale of the business in the future.
One of the things that need to be prepared to open a business is capital. With the capital, the business can be more easily run and developed. The banking sector has issued many financing programs for business capital, such as KUR or People’s Business Credit which are provided with minimal interest. Here we will explain several Types Of Islamic Financing And Their Benefits.
1. Syariah Working Capital Financing
Syariah working capital financing is financing with a short or long period intended for entrepreneurs who need additional working capital following Syariah principles. In this case, working capital is usually used to pay for production costs, buy raw materials, trade in goods and services, work on a development project, and others.
The Syariah working capital financing program can be obtained for those who open or own a business that is considered to have prospects, does not violate Islamic law and applicable laws and regulations.
2. Syariah Financing With A Sale And Purchase Scheme
There are 2 types of contracts in Syariah financing for working capital, the first is Syariah financing for working capital with a Murabaha or buying and selling scheme. In this Murabaha financing scheme, Islamic banks will finance the purchase of working capital goods needed by customers.
Financing will be given at the cost of principal and added with a profit margin for Islamic banks which has been approved by the bank and the customer. The level or amount of the bank’s profit has been determined at the beginning of the agreement or contract and this profit becomes part of the price of the goods sold.
For example, a businessman who is engaged in buying and selling clothes online gets a shirt order worth 100 million, but the entrepreneur only has a capital of 50 million. Then the entrepreneur can apply for working capital financing of 50 million as additional capital.
You need to know that, if the bank assesses the needs of entrepreneurs to be material, Islamic banks will provide working capital financing with a buying and selling scheme. By setting a profit margin at the beginning of the agreement, for example at 10 million, the total financing is worth 60 million.
3. Types Of Syariah Financing Cooperation Scheme
The type of Syariah financing contract is a profit-sharing partnership scheme or mudharabah and Musharaka. Syariah financing in this scheme is based on the willingness of both parties (banks and customers) to cooperate to increase the value of their assets. The contract agreement also includes a profit-sharing scheme that has been agreed upon by both parties.
For example, a contractor who gets an infrastructure development contract with the total capital required to carry out the contract is IDR 2 billion. However, this construction service entrepreneur only has a capital of Rp. 1.5 billion, which is still less than Rp. 500 million.
In this case, if the contractor requires more cash, the Islamic bank will provide Islamic financing with a profit-sharing scheme. In this scheme, the bank and the contractor work together and form a profit-sharing ratio agreement.