FCS puts your trade ideas into action. Arranging up to 70% funding plus required facilities.

Salient features of the deal-to-deal Musharika transaction:

• You only invest 30%
• FCS arranges partner of 20% + Bank financing for the balance of 50%.
• Your experience of the product is the pre-requisite.
• Total control with movement of the funds and the goods shall remain with the financing bank.
• Sharing of Profit and loss on pre-agreed terms.
• Transaction should be trade related and must be completed maximum within 180 days.

The principal amount to the partners are only returned once the bank financing is fully paid off and 10% is put in reserve and the profit and loss are shared once the trasaction is complete. On the 180^th day balance of the goods (if any) to be disposed off and either partner can adjust it with its share of the mutually agreed terms.

Important Note: FCS shall not be responsible for the confidentiality of the contents supplied by applicants either in the enclosed format, by fax, letter, telex or email.

You may fill up the application form by clicking here.

Financing of Full Cash Flow Cycle

Islamic Factoring (Financing of full working capital cycle) - Alternative to conventional cheques/bill discounting/forfaiting.

Credit sale is the established practice in the market and consequent cash flow problems arising from the sale of goods are commonly experienced. FCS has come up with an alternative to conventional system of Bill/Cheque discounting, factoring, Trust Receipt facilities. The scheme operates under Murabaha, Modaraba, and Musharakah modes of Islamic financing:

In the initial stage of a transaction, customers enter into Musharakah Agreement as to ease their future cashflow. FCS provides a solution to customers initial cash flow problems by arranging the acceptance of the third party cheques by the financing bank.

Note: Without recourse, financing is also provided under the Murabaha scheme whereby the credit customer buys the goods from the bank, and the Bank buys in cash from the financing bank.

FCS arranges the import or purchase of commodities by arranging the investment upto 70% of its value on behalf of the customers and makes necessary arrangements for its exports or deliveries to the end users as per the customers instructions. The sale proceeds thus received on maturities are credited to a special account at an Islamic Bank. On completion of the transaction FCS arranges to adjust their investment including the pre-agreed Murabaha profit and the remaining balance is credited to the customers account.

In this way, the customer does not have to discount the buyer's post dated cheques to meet their conventional banking T.R. commitment and thus having the same funding facility on the basis of deal-deal, but funding is restricted to each transaction as for the bank to control the movement of funds + goods at all times.

The date of the post dated cheques and/or bills of exchange should not exceed the due date of the Murabaha which means that FCS may arrange financing for the full working capital cycle unlike conventional banks where they allow a maximum of upto 120 days TR (regardless of working capital cycle) with additional facilities of PDC discounting for 90 days making a total working capital cycle of 150 days by charging interest plus discounting commission. We finance the full working capital cycle without additional costs limiting the financing for the transaction itself, not for any other purpose.