The Majlis Archive

Finance - Banking - Business The Majlis Vol 28 No 01, p.4

Ahmed buys goods from a supplier. Ahmed has an agreement with the supplier that if he pays the goods bought on credit within 30 days, then he will get

Question

Ahmed buys goods from a supplier. Ahmed has an agreement with the supplier that if he pays the goods bought on credit within 30 days, then he will get a 2.5% settlement discount. Ahmed does not have the cash flow, so Ahmed tells Abdullah he can pay it on his behalf but Abdullah says he will take the 2.5% discount for his own benefit. Ahmed agrees to these terms with Abdullah. Is this permissible?

Answer

The 2.5% which Abdullah takes is haraam riba.

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The Majlis Vol 28 No 01
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