How can a manager lawfully pay for his business?

Publié le par Asma Oudina

How can a manager lawfully pay for his business?

Published on July 21st, 2014 by Asma Oudina CEO at Asma Consulting


As Salem alaikum.

Here's a quick article which will give you an overview of the different licit sources of financing for a manager:

The self-financing 

Indeed, you can fund your investments yourself. Either by your savings or through aid the state was willing to give you (For instance unemployment).

The shareholding

Sharing profits and losses are lawful in Islam. Consider having more shareholders at first to get immediate cash assets for your investments and start your business faster.

Some legal advice on this subject:

- Fixing a percentage of the profit distributed to shareholders is lawful.

- The partnership between a Muslim and a non-Muslim for a project is possible from the the moment the project is compatible with Muslim jurisprudence

- The withdrawal of a company if it carries out illicit transactions


Solidarity-based loan without Riba.

It is a real loan without interests to 100% pure. The idea is to find somebody in your family, neighborhood or friends who are willing to lend you money without interests. Obviously an agreement drafted by the debtor will be established with witnesses (2 Muslim men or 4 Muslim women). It is possible to pawn goods if the debtor is a little bit uncertain, financially speaking. A financial analysis prepared by my good offices will enable the elimination of bad payers from the start, by leaning on bank accounts.

The repayment of a loan to a deceased person


Borrowing gold

Mortgaging a cheque is licit

Selling ​​the mortgage is illicit


The love money.

It's very simple: you just have to find people who are taken with your project and want to play a part in its realization by financing it naturally because they like a lot your concept. There is no question of appealing for donations. Just present your project and create a little case which enables you to collect money from those who want to contribute to the fulfillment of your idea. Indeed, it is not a Sunnah to disturb people with appeals for donations. Be proud of your project and especially make invocations!


Assembling the loan and the donation

Asma Oudina, consultante


Translation : @yasmine_bnl, étudiante chez Sciencespo


How can a manager lawfully pay for his business?

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