The Advantages of Using Islamic Funding For A Commercial Space  

Islamic funding can help business owners lease commercial properties. This can be excellent if completed properly. It needs to be riba free and both the tenant and the landlord need to benefit from the transaction.

Of course you can also lease to own one of these commercial properties and stay sharia compliant. Here’s a few scenarios you’ll need to consider.

Location

Good locations are difficult to find for business owners. It’s easier if you’re looking to own one of these properties through a leasing arrangement. If the property helps your sales grow through ease of transportation and foot traffic, and you are close to key suppliers, you might want to consider buying the space.

Requirements

If you are considering a commercial property using our Islamic financing method, you will need to consider some requirements. These include:

• Bank statements covering at least two months. These need to include both business and personal pages.
• A personal financial statement gets included.
• Three years’ worth of tax returns is another requirement.

For a complete checklist follow this link.

There are several other reasons why you should consider a lease to own arrangement to purchase a commercial property.

To Build Wealth

If you are looking for an excellent investment as an entrepreneur, commercial properties should be at the top of your list.  Our Ijara system is riba free. What’s more, the formula and structure that we use is sharia compliant. If you are interested in a timeline and a compliance history, it is available on our website.

Following are some other excellent tips if you are looking at leasing a commercial property with the intent of owning it eventually.

Islamic Funding and Calculating Costs

It’s important to remember that calculating a commercial property’s lease rates is about more than just the amount of rent. There are usually fees and taxes. There are also maintenance needs that you’ll need to look after while you are occupying any commercial space.

Be Sure To Review The Contract.

Leases in general and ijara contracts are legally binding agreements. It’s always prudent to have these documents reviewed by a lawyer and other officials. A legal expert that specializes in lease reviews is preferred.

Finding The Best Deal

Comparing what’s available in the market can help you to find the best deal. Compare what similar properties are charging for usable space. This is one way that you can negotiate rates for the one you want accordingly.

Interest and Risk That’s Shared Unequally

Leasing a  commercial property using our Islamic funding model allows practicing Muslims to stay sharia compliant against both interest and risk that is shared unequally. This type of Ijara loan sets up a situation where there is a lessor/lessee agreement rather than the more traditional relationship between a creditor and debtor. This process has been used in the United States for over two decades.