A deferred-payment sale is an ordinary sale in which the buyer receives the goods immediately and pays later, in one sum or in instalments, at a total price fixed in advance that may be higher than the cash price.
Buying in instalments at a shop
A fridge, a computer or a sofa can be sold directly by the retailer with payment spread out. The shop remains the only creditor: it sets a credit price, hands over the item the same day and collects the instalments without any lender being involved.
900 euros cash or 1,020 euros over twelve months
The seller may display both prices for the same television. The customer picks one before concluding, then pays 85 euros a month if choosing instalments. The 120-euro difference is part of the price and does not grow afterwards.
Selling shop or partner finance company?
Many retailers actually offer consumer credit granted by a finance company, which pays the shop and lends to the customer at interest. The signed contract, its letterhead and any stated borrowing rate show who is really financing the purchase.
Online split payments and late fees
Interest-free pay in three or four schemes are often funded by a commission charged to the merchant. Contemporary scholars debate them: the sensitive point is the fees charged for late payment, which go to the provider rather than to charity.
Supplier credit at thirty, sixty or ninety days
Between businesses, the vast majority of sales are settled on invoice terms. When the price is the same as for cash, this is simply a compliant deferred-payment sale. The period granted funds the customer's working capital without any bank borrowing.
Two price lists for the same catalogue
A wholesaler may publish a cash price list and a higher 90-day list. The rule concerns the moment of choice: each purchase order must adopt a single option, otherwise the price remains undetermined and the sale becomes questionable in terms of gharar.
Early-payment discounts remain debated
A clause offering 2 % off for payment within ten days raises the question of reducing a debt in exchange for faster payment. Several bodies accept a discount granted freely at settlement but are wary when it is promised contractually on the invoice.
Securing collection: pledge, guarantee and cheques
A credit seller may require a pledge, including over the item sold, a personal or bank guarantee, or payment instruments handed over in advance. These securities guarantee payment of the agreed price without ever allowing the seller to claim more.
Seeds and fertiliser paid for after harvest
In many rural areas, input suppliers deliver seeds, fertiliser or crop protection products at the start of the season and are paid when the harvest is sold. This differs from Salam: here it is the goods that are delivered first.
A finished home paid to the developer in instalments
Some developers sell completed flats with a payment schedule over several years written directly into the deed of sale. The overall price is set at signing. For a property still to be built, the suitable contract is rather Istisna.
Setting the credit price from a benchmark rate
To calculate the mark-up, sellers often draw on a market index and the length of the term granted. This calculation method is not criticised as long as the result becomes a fixed amount written into the contract that is never adjusted afterwards.
What do AAOIFI standards say about late customers?
Sharia Standard No. 3 distinguishes the insolvent debtor, who must be given time, from the solvent debtor who delays. For the latter it accepts an undertaking to donate to charity, without the seller being able to profit from it.
Specialist external source
AAOIFI's list of issued standards points to the Sharia texts on Murabaha, the procrastinating debtor and the guarantees that apply to credit sales.