Giving an early profit in an investment

Q: I have a furniture trading and manufacturing business. I want to take investment to grow my business. I am offering my prospects 30% to 36% (variable) early profit on their investment if they invest for a minimum 1 year.

Incase of any loss they will have to bear the loss as well. Is this shariah compliant and halaal?

A: You cannot give an early profit. The profit can only be given after the business shows some result.

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

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)