Selling on credit: pointers for seller and buyer
AmanaFi team · Updated · 1 min read
Selling a good with deferred payment is accepted in Islamic law, provided the total price is fixed at the time of sale and does not change afterwards depending on lateness. Writing down the conditions protects both parties.
What is permitted
The seller may offer a deferred price higher than the cash price, provided the price is clear and final when the contract is concluded.
- Cash price and deferred price announced before concluding.
- Price chosen by the buyer among the options, with no ambiguity.
- Due dates fixed from the start.
What is forbidden
Raising the price because the buyer pays late amounts to interest. Deferred payment for gold, silver or currencies is not accepted, because these exchanges require immediate handover.
Practical precautions
Write down the good, the price, the schedule, and keep proof of each payment. As a seller, assess the buyer's reliability and limit the amount of credit. As a buyer, commit only to dates you can keep.
Frequently asked
Can a discount be given if the buyer pays earlier?
Many scholars allow it if clearly agreed and without tying the contract to interest. Views vary: consult a qualified person for your case.
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