How to apply for Islamic financing

Entrepreneurs wishing to procure funds from an Islamic bank should remember three tips: knowledge of oneself, knowledge of the proposed venture and its goals, and knowledge of the means desired for achieving said goals. It should not be assumed that Islamic banks are charity groups -- they are businesses and they should be approached as such. Since an Islamic bank faces more risk in financing a project than a conventional bank does, audited financial statements from the applicant's firm are a must. Feasibility studies have a role in the application process. Cash flow is a crucial piece of knowledge of one's goals. The preparations made before seeking Islamic financing give the applicant a better understanding of his business and a better sense of what he wishes to do with it.