I have developed an Islamic way of borrowing for small businesses.
This is how it happens, A person gives you money as a loan and you give them a % of profits or loss of your company for the duration of time.
For example, Person A gives you a 0.5 million loan for a 2% share in the profits/loss of the company for 6 months.
You can calculate your company’s profit or loss monthly and pay that person if it is a profit, and if it is a loss you can write it down. After 6 months you return the loan amount minus the loss. or extend the agreement for another 6 months.
It works very well for companies that are in sectors with minimum risks. Please let me know your thoughts I am looking forward to your comments 🙂
Original Facebook: Islamic Loan for companies