Bai salam (forward financing)

Resource type: Glossary item

Status: Maintained

A forward financing transaction, where the financial institution pays in advance for buying specified assets, which the seller will supply on a pre-agreed date. Usually, the financier receives a discount for advance payment (calculated with reference to a benchmark, such as LIBOR (www.practicallaw.com/3-107-6318)), plus a margin.

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  • Resource ID: 7-367-4015
  • Products:  IP&IT, PLC UK Commercial, PLC UK Environment, PLC UK Finance
  • This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.
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  • Islamic FinanceIslamic Finance (http://crossborder.practicallaw.com/3-201-5201)
Practice note: overview
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Glossary
  • Salam sukuk Salam sukuk (http://crossborder.practicallaw.com/topic0-502-0880)
  • Sukuk al salam Sukuk al salam (http://crossborder.practicallaw.com/topic4-501-9988)
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