Istisna is a sale transaction of goods that needs to be manufactured, assembled or constructed as per the specifications agreed between the seller and buyer for a definite price i.e. the subject matter is sold before it comes into existence. In istisna it is necessary that the cost (raw material and labor) of manufacturing, assembling or construction is borne by the manufacturer, assembler or constructor.
Istisna can be used for providing financing facility to clients who are involved in the business of manufacturing, assembling or construction. Amount paid out as Istisna price to the manufacturer, assembler or constructor can be used by them for any purpose as they want.
Feature and Benefits:
- Istisna can be used by small, medium, commercial enterprises & corporate entities.
- Istisna is an ideal mode for medium to Short term finance as it offers flexible financing terms to match the Customers’ requirements.