What is the ruling on one who buys goods and does not pay their price until after he sells them?

Question : I am a grain merchant who buys wheat and barley, and I do not pay the price until after selling it to a merchant. Likewise, I do not settle the price until after the merchant who bought it from me sells it. What is the ruling on this?

Answer : The ruling in this matter is that there is no harm in it, because there is no zakah on grains or dirhams. It is permissible for a person to buy grains with deferred dirhams. In fact, it is permissible for a person to buy land with a deferred price, provided that the deferral does not involve the price and the item being of the type in which riba (usury or interest) occurs. If the price and the item are of the type in which riba occurs, it is not permissible to separate before taking possession. Yes.