|
Istisna’a ((For more, see the Vernimmen.com Newsletter, November 2006))
This is an agreement under which one of the parties (Moustasni’i) requests the other party (Snai’i) to manufacture or build an asset which is paid for in advance, in instalments or on completion. This is a variation which is similar to the Salam contract, except that the object of the transaction is the delivery of finished products that have undergone a transformation process, and not goods purchased as is.
Istisna’a thus provides medium-term financing to cover financing requirements for the manufacture, construction and supply of finished products.
Istisna’a ((For more, see the Vernimmen.com Newsletter, November 2006))
This is an agreement under which one of the parties (Moustasni’i) requests the other party (Snai’i) to manufacture or build an asset which is paid for in advance, in instalments or on completion. This is a variation which is similar to the Salam contract, except that the object of the transaction is the delivery of finished products that have undergone a transformation process, and not goods purchased as is.
Istisna’a thus provides medium-term financing to cover financing requirements for the manufacture, construction and supply of finished products.
See
all terms in the dictionary of finance
|
|
|
|
You get more than just a glossary
on www.vernimmen.com:
- A monthly newsletter with over 60,000
subscribers
- 610,000 financial data for over 16,000
groups
- A 279-question quiz with answers
- A text book that has
sold 130,000 copies
- And all the rest |
Definition of Istisna’a - Finance dictionary
