Term Financing-i
Introduction

It is a medium- to long-term financing facility offered by MBSB Bank to small, medium, and big enterprises. Companies usually use Term Financing to acquire a fixed asset, such as equipment or a building, or to cover their working capital.

Tawarruq is the Shariah instrument used in Term Financing facilities. Sales under the Tawarruq arrangement are conducted according to Murabahah, which means that the cost and the profit margin are known and agreed upon in advance by both parties.

Through Wakalah (Power of Attorney), Customer appoints MBSB Bank as Customer’s sale and purchase agent in all sale transactions of the Tawarruq arrangement.