If a man sells a commodity on credit, what is the Sharia-compliant method for securing the debt?
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The questioner : If a man sells a commodity on credit, what is the Sharia-compliant method for securing the debt?
The Shaykh : There are three methods. The first is a pledge, where he says to the buyer, "Give me a pledge," and the buyer provides a pledge, either with the same commodity sold to him, or with real estate, or with a car; the point is that he takes a pledge from him. This secures the debt; if the debt comes due and is not paid, the creditor has the right to sell the pledge and recover his right from it.
The second method is a guarantee, a guarantee of the debtor, where he brings a trustworthy, wealthy, and faithful man and says, "This man guarantees me for this debt." If the term of the debt comes due, the owner of the right, who is the creditor, has the right to demand from the guarantor what he guaranteed for him.
The third method is surety, which is: a person guarantees the debtor by bringing him to the creditor when the term of the debt comes due. The difference between a guarantee and surety is that a guarantee is a guarantee of the debt, whereas surety is a guarantee of bringing the person for whom surety is given. If the surety brings the person for whom surety is given, he is absolved of it. Yes.
The questioner : May Allah reward you.
The Shaykh : There are three methods. The first is a pledge, where he says to the buyer, "Give me a pledge," and the buyer provides a pledge, either with the same commodity sold to him, or with real estate, or with a car; the point is that he takes a pledge from him. This secures the debt; if the debt comes due and is not paid, the creditor has the right to sell the pledge and recover his right from it.
The second method is a guarantee, a guarantee of the debtor, where he brings a trustworthy, wealthy, and faithful man and says, "This man guarantees me for this debt." If the term of the debt comes due, the owner of the right, who is the creditor, has the right to demand from the guarantor what he guaranteed for him.
The third method is surety, which is: a person guarantees the debtor by bringing him to the creditor when the term of the debt comes due. The difference between a guarantee and surety is that a guarantee is a guarantee of the debt, whereas surety is a guarantee of bringing the person for whom surety is given. If the surety brings the person for whom surety is given, he is absolved of it. Yes.
The questioner : May Allah reward you.