Invoice Financing (Islamic Financing)

A useful guide on Islamic accounts receivable financing offered on Funding Societies.

Melissa avatar
Written by Melissa
Updated over a week ago

What is Invoice Financing (Islamic Financing)

Invoice Financing (Islamic Financing) , is one of our Shariah compliant investment products. Just like the conventional product, this financing is when the sellers (“Issuer ” in this case) sell their future receivables or invoices that the seller's issue to their customers (“Buyer”) to get immediate cash.

When the buyers pay these invoices, Investors who bought these future receivables would receive the full payment and make a return.

How to differentiate the Invoice Financing (Islamic Financing) with the conventional Invoice Financing ?

For your easy reference, the Note Code for Invoice Financing (Islamic Financing) is MBIIF. Alternatively, there will be a Mooncrest Icon next to the Note code for Islamic Financing.

What is the tenure of this investment product ?

Tenure is in the range of 15 days to 120 days, with bullet payments of full principal and returns to be paid at the end of the tenure.

Are there any early payment fees for this product?

Issuers can pay anytime within the tenor and there are no early payment fees. If the listing is paid early, Investors will receive pro-rated returns according to the days of fund utilized.

For example, when an Issuer makes an early full payment 20 days after the fund is disbursed, the returns rate Investor received will be 20 days returns . The 20 days returns received is calculated as:

[ (returns rate per annum / 360 days) X 20 days ]

Note: Auto Invest is now available for both conventional and Islamic investment Notes. Click here to know more on how to get invested in Islamic Notes only.

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