Selling goods for cash at one price and on installment at another price
Machine translationRead the Arabic original
Q: I have a shop for selling carpets and blankets. If someone wants to buy from us for cash, we sell to them. If they want to buy on installment, we do so with an increase in the value of the goods. When we sell on installment, we receive a down payment of up to thirty percent. We have a person who collects the debts from people for us, and we give him ten percent or close to that in exchange for his collection of those debts. Is what we are doing in this mentioned work permissible by the Shari'ah, or is there a defect in it?
A: If the seller and buyer agree that he will sell the goods for a known cash price, or that he will sell the goods on credit for a known price and a known time and installment, even if it is more than what he sells it for in cash, without conditioning an increase in the price if he delays payment, then that is permissible by the Shari'ah, due to the saying of Allah the Exalted:[Al-Baqarah 2:282] And because it is established that the Messenger (peace and blessings be upon him) bought on credit. However, it should be known that it is not permissible for the seller to say to the buyer: "I will sell you this goods for such a cash price, or for such a credit price," and they part ways before agreeing on a specific price, combining them in one contract, due to the prohibition of the Prophet (peace and blessings be upon him) of two sales in one sale. Accordingly, the obligatory thing is the agreement
between the seller and the buyer in the contract session that the sale is cash only, or that it is credit only. As for what the debt collector takes from a known percentage between you in exchange for his service and effort in collecting it, there is no harm or defect in that.
A: If the seller and buyer agree that he will sell the goods for a known cash price, or that he will sell the goods on credit for a known price and a known time and installment, even if it is more than what he sells it for in cash, without conditioning an increase in the price if he delays payment, then that is permissible by the Shari'ah, due to the saying of Allah the Exalted:
O you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُbetween the seller and the buyer in the contract session that the sale is cash only, or that it is credit only. As for what the debt collector takes from a known percentage between you in exchange for his service and effort in collecting it, there is no harm or defect in that.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.