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Istisna’a


Istisna'a is a deferred-delivery sale contract between the client/purchaser (first party) and the financial institution (second party), in which the second party, at the request of the first party, shall manufacture determined goods or acquire it at the delivery date, provided that the financial institution shall bear the material and/or manufacturing costs, in return for the agreed-upon price and with the agreed-upon manner; either in installments or deferred payment. (Islamic legal definition).
Such formula serves clients wishing to purchase a product that needs manufacturing and here Ethmar assumes the role of the financial institution that finance the costs of such manufacturing, giving that it is Ethmar that shall assume the responsibility of preparing the credit assessment of clients as well as the responsibility of following up and collecting installments from customers within the agreed schedule.

Example: A client demanding financing the manufacturing of a kitchen.