Early settlement discount

Submitted by admin on Thu, 2016-11-03 07:33

Q: I am in retail and many suppliers state their terms similar or as follows: COD 10% 30 Days 7% 60 Days - No discount This is the general practise amongst most wholesalers and it is clear when an account is being opened. If there is a change we are informed well in advance. I sometimes take the full 60 days without a discount but on occasions where my cash flow is better, I do take advantage of their different settlement discounts. Is this permissible?

A: No it is not permissible.

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

Category:

Business and Dealings›Trade›Valid & Invalid transactions

Labels:

early settlement discount

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