‘Wakalah Speed Draft’ is an alternate financial solution that compliments the most popular conventional ‘LOLC Speed-Draft’ or permanent and temporary overdraft facilities offered by commercial banks. As the name denotes, customers can now obtain a speedy cash-advance at their convenience.
This facility is most suitable for businesses that are engaged in trading and manufacturing that requires short to mid-term working capital. It is a flexible option that caters to a multitude of financing needs such as asset purchases, trading stock & raw-material replenishments, factory renovations and expansions as part of business growth.
One of its main features is its ability to draw-down funds in flexible quantums based on the customer’s cash-need and repayment capabilities. ‘Wakalah Speed Draft’ helps increase the liquidity of the business and facilitate a greater level of business activity allowing greater flexibility of usage and repayment as and when the Customer requires it. It is also structured to be less costly and more feasible for business purposes as profit-mark-up will be accrued purely based on usage or draw-down on funds.
LOLC Al-Falaah ‘Wakalah Speed Draft’ is formed within the precepts of the Wakalah-bil-isthismar concept. The Customer is appointed as an agent of LOLC Al-Falaah, with an undertaking that the funds advanced are utilized for the purposes of trading transactions and working capital requirements for businesses. The Customer is provided with short to mid-term finance to which repayment methods are flexible and are based on a methodology of profits share.