YUMYME

CHOCOLATES
Group Presentation
Ahmad Al Sharif 201200112
Yazen Nael Alhussain 201100058
Alaa Jasim Rajab - 201000791

Table of Contents
1. Introduction
2. Islamic Bank Researched
1. Family Bank
2. BISB Bank
3. The Recommended Bank
4. The Recommended Contract
5. Financing Procedure
6. The Risks and mitigations
7. Difficulties
8. Conclusion

Introduction
1. Definitions and legal /Sharia basis for the chosen contract.
2. Definitions and legal /Sharia basis for the chosen contract.
3. The required forms and documents used in the bank.
4. The procedures for providing the money?
5. The risks involved in the chosen contract and how can
they be mitigated?

Islamic Banks Researched

Bank Overview
Product Eligibility
Product Terms
Product Documentation

Recommended Bank
They allow you to take financing providing a good business plan.
Small amount that they can bare to pay for.
Refinancing Scheme.
Profit rate is Supported by Tamkeen.

Family bank

Tamkeen Support

18%

8%

Recommended Contract
Murabaha
-

Tawarruq

Can only be granted for the purchase of equipment. -

Is granted in cash, where you can utilize the amount

Hence we have to provide different quotations for

in any matter you require with regards to the

the equipment we require. Hence we dont have any

business.

liquidity to pay for overhead expenses.

Takes a long time for the amount to be provided for -

Takes a shorter time to be processed and the

the reason that it all depends on the availability and

amount to be delivered.

the delivery of the required equipment.

-

It is time consuming for the bank, for the fact that

they have to go and value the Martials and compare

it to the quotation.
Youre paying installments for equipment that are -

Whereas the cash obtained can help you in running

depreciating in value as you use them, and will take

various operations (working capital).

a while for you to generate profits from.

In the case we decided to not go forward we have to -

There is no penalty bared if we decided not to go

a pay a penalty, that is assigned based on the

forward with the contract.

amount
-

you

purchased).
Default

have

requested

(equipment
-

Default

Financing Procedure
1. The client meets with the loan officer and provides him with the business plan
and the required documents mentioned in the above section.
2. The loan officer take two working days to assess the business plan in terms of
how sharia compliant is their business, it is also presented to the sharia
reviewer.
3. If the business plan is approved the client is requested to fill and sign and the
Financing application form and the Tamkeen Application.
4. Then the client agrees on the term and condition of the Tawarruq (Commodity
Murabha) contract. Which include the promise to buy contract.
5. Then the bank applies the tawarruq procedures as follows (refer to appendix)

Tawarruq Procedure

The Risks and Mitigations

Credit Default
Goodwill
Market Volatility

Difficulties
Information Confidentiality.
Limited Figurative information from the bank.
CR was a major requirement.

Conclusion
Go forward with Family Bank.
Apply for Tawarruq Contract.