Use Case 9

Merchant Credit Lines for Retail and Services

Traditional merchant cash advances (MCAs) provide fast liquidity to merchants by taking a fixed share of daily card receipts, but they rely on interest-style pricing and can be expensive. SukukFi can replace MCA-style facilities with Sharia structures that fund real inventory and working capital needs without interest-based lending.

For example, a grocery retailer can use a SukukFi credit line to pay wholesalers for inventory. Repayments are sourced directly from point-of-sale (POS) revenues as goods are sold, aligning cash outflows with 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. This keeps financing asset-backed and tied to real trade flows.
• Mudarabah: SukukFi provides capital into the trading activity, paying suppliers directly 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: Inventory purchases financed with repayment from POS receipts.
• Restaurants and cafes: Working capital for food suppliers and payroll, repaid from daily card sales.
• Pharmacies and medical suppliers: Stock replenishment funded in line with sales velocity.
• Services and salons: Equipment and consumables financed with revenue-linked repayment.

Sharia conclusion: Murabaha and Mudarabah link returns to real goods and business performance, offering merchants a transparent alternative to MCA products while preserving flexible, revenue-aligned repayment schedules.