Is Murabaha financing suitable for purchasing equipment for my company? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

Is Murabaha financing suitable for purchasing equipment for my company?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

Murabaha financing can be used to finance company equipment if the bank purchases the asset and then sells it to you under agreed-upon terms.

Focus on the asset's ownership before the sale, the purchase price, the final selling price, fees, and guarantees.

For companies specifically, you must also assess whether the cash flow generated from the asset is sufficient to cover the repayments.

The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.

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