Credit Sales (Bags. 3)

The difference between buying and selling credit and other buying and selling (continued)

We still continue the discussion about the difference between buying and selling credit and other buying and selling. In the previous discussion, it was discussed about the difference in buying and selling credit by buying and selling Al-Ajil and buying and selling Al-‘inah. There are still a few more sales that are similar to credit and credit. Among them,

Bay’u At-Tawarruq (sale Bargainruq)

Is a buying and selling system which is almost the same as the sale and purchase of credit. The following is a definition of Bay’u At-Tawarruq,

To buy commodities at a suspended price or installments and then sell it to others at an accelerated price to get money.

“Someone buys an item by repayment or credit, then he resells the item to others in cash, aims to make him make a profit.” [1]

In fact, the sale and purchase is caused by the need for money in a fast time, so he does not need the item. The item is purchased for resold in order to get money or assets quickly. The simple picture is as the following example,

A requires money, then A takes the initiative to buy a car to B for one hundred million by installment for one year. After he got his car, he sold the car to C at a price of eighty million cash or cash.

So that A who originally needs money (does not need with his car), by buying and selling this, then he succeeded in getting money quickly. Although he only got eighty million and had to pay in installments as much as one hundred million. Thus the simple picture of buying and selling At-Tawarruq.

Buying and selling law At-Tawarruq

Happen Khilaf (Disposal of Opinion) between Bachelor of Nutmeg. Some allow and some do not allow it. Until then, such sales were categorized by ‘Umar bin Abdul Aziz with,

He is the Brother of the Lord

“Sales like this are a matter of time for usury.” [2]

Because buying and selling is almost the same as buying and selling ‘Inah If no condition is met. The scholars who allow this sale provide very strict conditions. Among the conditions is,

First: There is no engineering or fictitious transactions.

Like by engineering the second buyer. The second buyer must really purely want to buy the item and not an order from the first hand seller.

Second: There is no hidden agreement between the first hand seller and the second buyer.

Namely, the second buyer is a person who does not know about the contract between the second and first seller; There was also no agreement between the two of them.

Third: The buyer must really have the goods before reselling.

Do not let the goods have not been received, then immediately sold to the second buyer. Of course the goods must be accepted first and confirmed well.

Fourth: The first buyer cannot sell goods to the seller at a price cheaper than the price when buying it.

These requirements must be met. If not, then he will fall to buying and selling ‘In the which has been forbidden by God and his messenger.

So that buying and selling is permissible by the scholars, of course with such strict conditions as mentioned the points above.

The difference between buying and selling and credit buying and selling is as the following table,

Difference between Bay’u At-taqsith And Bay’u At-Tawarruq
Bay’u At-taqsith	Bay’u At-Tawarruq
The main purpose of the buyer is to need the goods he bought.	Buyers do not need goods, buyers only need money.
Paid by credit, without any more transactions after that.	Paid on credit; And then the goods are resold to others in cash.
Only involves two parties, namely the seller and buyer (credit).	Involving three parties; The first seller, the first buyer (as well as the second seller), and the second buyer.

Al-Murabah ( Sell ​​murabaha)

Including buying and selling that is almost similar to credit buying and selling is Al-Murabah And this buying and selling is among the forms of buying and selling that is widely scattered, not in the Muslim community. Another term for buying and selling is,

Sell ​​murabaha to orders to buy

“Buying and selling murabaha (take advantage) based on the request of the buyer to buy goods.”

The definition of buying and selling is,

Selling what a person has with his capital, with a limited limited profit

“Buying and selling something that is owned by someone at a capital price, accompanied by limited and known profits.” [3]

A simple picture as the following example,

A wants to buy a car, then A comes to B reporting to buy a car with a certain brand. After that, B bought the car with his money for two hundred million cash. Then, B sells the car to A for two hundred and twenty million by credit.

In this example, B takes twenty million from the sale of the car. Of course, buying and selling like this is not a taboo, considering that many have practiced and do it. But related to this buying and selling, the conditions must be very strict. It can be said, it is very difficult if you want to be practiced in the reality.

So that the scholars weigh with caution, considering that this buying and selling can fall to the forbidden sale and purchase. Like there is usury to him, Bay’ul, Selling what is not his, there are two contracts in one transaction, and so forth.

The practice of buying and selling, usually occurs between customers and banks. The position of the bank as the first buyer and seller. Think of this example the bank as a seller, given its position as a seller to the customer and customer as the buyer of the item.

Scholars who allow sales to provide very strict conditions, including:

First: The seller or investor must really have the item.

If in this case as an example is a bank, then the bank must really have the item. If the object of buying and selling is a house, then the bank must really have the house. In the status of ownership, name, and so on.

Second: Losses and damage to the goods are borne by the seller or investor.

If the goods are damaged, loss, etc. before the delivery of the goods to the customer, the seller (bank) is responsible for the damage before being submitted to the customer or buyer. In this case, the bank is responsible and not a responsible customer.

Third: The bank has the right to offer prices to customers or buyers and customers have the right to consider it.

That is, after the bank buys a house that matches the criteria of the buyer with a price quote that is certainly higher, the customer or buyer has the right to consider it. Do you still want to buy or not buy it.

Fourth: There is no way there are two contracts at once.

Fifth: Margin (profit) must be clear at the beginning mentioned in detail and may not change when the contract is running.

Sixth: There should be no late fine, even though the fine is wrapped in other names.

And there are many more conditions and terms regarding Al-Murabah This. For more details, please read the following MUI fatwa: Fatwa DSN-MUI No. 04/DSN-MUI/IV/2000.

Of course it is very clear the similarities and differences between credit buying and selling (instruction) by buying and selling Al-Murabaha. The similarity is to pay in installments or by credit and equally can increase prices. The difference lies as the table below,

Difference between Bay’u At-taqsith And Al-Murabah
Bay’u At-taqsith	Bay’u Al-Mubarahah
Buying and selling with payments made in installments in a certain period of time.	Buying and selling by mentioning the basic prices and clear profits.
Paid by credit, without any more transactions after that.	Can be paid on credit to investors or sellers, can be cash. Depending on the agreement of the agreement of both parties.
Only involves two parties, namely the seller and buyer (credit).	Involving three parties, namely the first seller, the first buyer (as well as the second seller), and the second buyer.

Thus the discussion of differences and equations between credit buying and selling and other buying and selling.

Hope it is useful. Wallahu a’lam.

[Bersambung]

Back to section 2 continue to section 4

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Depok, 22 Shawwal 1446/19 March 2025

Writer: Zia Abdurrofi

Article Muslim.or.id

Reference:

Al-Bay’u bit taqsith ahkaamuhu wa a sentauhanu filqil islamiy, Dr. Abdunnur Farih Ali.

And some other references

Footnote:

[1] Al-Bay’u bit taqsith ahkaamuhu wa a sentauhanu filqil islamiy, matter. 77.

[2] Al-Bay’u bit taqsith ahkaamuhu wa a sentauhanu filqil islamiy, matter. 77; quoted from the book Majmu ‘Fatawa Ibn Taimiyyah, 29: 5.

[3] Al-Bay’u bit taqsith ahkaamuhu wa a sentauhanu filqil islamiy, matter. 78