Use Case 9

Merchant Credit Lines for Retail and Services

Traditional merchant cash advances (MCAs) give merchants fast liquidity by taking a fixed share of daily card receipts, but price that liquidity like interest. SukukFi replaces MCA-style facilities with Sharia structures that fund real inventory and working capital without interest-based lending.

A grocery retailer, for example, uses a SukukFi credit line to pay wholesalers for inventory. Repayments come from point-of-sale (POS) revenues as goods sell, matching cash outflows to business performance.

Sharia Structuring

• Murabaha: SukukFi purchases inventory or goods from suppliers and sells them to the merchant at a disclosed markup, payable over time. Financing stays asset-backed and tied to real trade flows.
• Mudarabah: SukukFi provides capital into the trading activity, paying suppliers on behalf of the merchant. The merchant manages procurement and sales, and profits are shared by agreed ratios linked to actual sales performance.

Use Cases Across Merchant Segments

• Grocery and retail: SukukFi finances inventory purchases with repayments from POS receipts.
• Restaurants and cafes: SukukFi provides working capital for food suppliers and payroll, repaid from daily card sales.
• Pharmacies and medical suppliers: SukukFi funds stock replenishment in line with sales velocity.
• Services and salons: Equipment and consumables are financed with revenue-linked repayments.

Sharia conclusion: Murabaha and Mudarabah tie returns to real goods and business performance, giving merchants a transparent alternative to MCA products with flexible, revenue-aligned repayment schedules.