Mogawala (Istisna, Forward Sale of an Asset)

Secure Your Tomorrow with

Forward Sale Agreements

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 way, businesses can make better use of their money while building high-value assets or products.

Features

Financing each stage of your success with customised solutions.
A written agreement between the bank and the client is required, which will govern the transaction of advance buying and selling.
The contract should clearly state the details of the product, including name, description, specifications, quantity, quality, size, delivery date, time, location, and any related costs like transportation and storage.
The purchase price must be paid upfront as outlined in the contract, and if agreed upon, the product can be delivered in installments.
If the client cannot deliver the product on time or as agreed in terms of quality and quantity, they will be required to return the advance payment along with compensation for the delay.
If the product delivered is less than the contracted amount, the client must repay the bank for the shortfall in value.
There is no need to mention the cost and profit separately in the contract—only the total purchase price needs to be stated.

Benefits

By providing funds in stages, Istisna helps businesses manage cash flow effectively
Istisna can be customized to meet the specific needs of different businesses
The ability to deliver goods or assets in stages allows businesses to optimize their resources
The financing model can help businesses develop high-value assets and products