Match an SME financing need to an Islamic-finance structure based on asset, use, and risk-sharing facts.
SME request The client wants one USD 300,000 facility. The uses are ovens, delivery vans, supplier stock, and payroll. The banker wants speed, but one structure may not fit all uses. Wrong-fit structuring creates Shariah, documentation, and repayment risk. Structure by use of funds Asset -> Use -> Risk -> Alternative Identify the asset or business purpose, decide whether ownership or use is being financed, test who bears risk, then compare the client's real alternative. Shortcut Use the bank's default product for the whole amount. The final structure matches substance instead of convenience. A single cash request can contain multiple…
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