Types of Musharakah Financing Sample Clauses

Types of Musharakah Financing. Partnership financing (equity participation) can be categorized according to the duration of the project,2 it can be of either indefinite period, as it is in the case of the stock of the joint companies, or a definite (short, medium or long) period as it is in case of participation finance through Musharakah when only it is for specific period or shares in partnerships when profit only and not the capital gain is targeted. A short term financing is usually for financing of working capital for one production period, season, fiscal ySar, or even a certain operation which involves production period ranging between 3 and 12 months duration3.Thus the short-term and impermanent Musharakah agreement is normally for one short-term and specific purpose, such as the purchase and sale of a machine or a commodity. Both the bank and its partner contribute 1 Idem
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