Financing for Each Stage
Receive customized financing support designed to meet the needs of each stage of your project or business growth.
Home > Corporate > Islamic Financing Products > Mogawala (Istisna)
Structured Financing
For Your Projects
Mogawala (Istisna)
At Bank of Khartoum, we offer Istisna, a flexible financing scheme that helps businesses manage their manufacturing, construction, or processing projects. Instead of giving all the funds at once, we provide financing in stages, making it easier to keep projects moving smoothly.
For example, construction companies can get funding for each slab or section of a building as the work progresses. Manufacturers can also finance large orders step-by-step, covering production or processing costs as needed. This gives businesses more control over their cash flow at every stage.
For example, construction companies can get funding for each slab or section of a building as the work progresses. Manufacturers can also finance large orders step-by-step, covering production or processing costs as needed. This gives businesses more control over their cash flow at every stage.
Features
Written Agreement
A written agreement between the Bank and client must set out all terms governing the advance purchase and sale.
Product Details
The contract must specify product details, quantity, quality, delivery arrangements, and all related costs like transportation or storage.
Advance Payment
The purchase price must be paid upfront as outlined in the contract, and if agreed upon, the product can be delivered in installments.
Timely Delivery
Failure to deliver as agreed requires repayment of the advance amount, together with compensation for the resulting delay.
Shortfall in Value
If the product delivered is less than the contracted amount, the client must repay the bank for the shortfall in value.
Purchase Price
There is no need to mention the cost and profit separately in the contract—only the total purchase price needs to be stated.
Benefits
Effective Cash Flow
By providing funds in stages, Istisna helps businesses manage cash flow effectively.
Customized Solution
Istisna can be customized to meet the specific needs of different businesses.
Optimized Resources
The ability to deliver goods or assets in stages allows businesses to optimize their resources.
Asset Development
This financing model can help businesses develop high-value assets and products.
