Finance Islamic Style


As Shariah-compliant assets continue to grow, New York City-based Palm National Partners offers an asset sale-leaseback program which allows small businesses to use the cash equity of their existing assets to fund their businesses’ growth and expansion. The program has been approved as Shariah-compliant by internationally-renowned Shariah scholar, Dr. Yousef Abdullah Al-Shubaily. Originally available in eight states, Palm is now servicing 25 states. 

Under the program, Palm purchases an asset or assets from a small business for an up-front payment. The company then leases the single or multiple assets back to the business on a rent-to-own basis over what is usually a six-month term. During that time, the business maintains possession and has full use of the assets. At the end of the lease, ownership of the assets transfers back to the business. The program provides small businesses with short-term capital of up to a year, in amounts ranging from $10,000 to $200,000. 

Palm does not lend money and does not charge interest, both of which are not permissible under Islamic law. Islamic law allows the sale and purchase of assets for a profit, either by using all-cash or by installment payments over time, a “rent to own” or “ijara” structure. Because Palm’s asset sale-leaseback program involves buying and selling assets under a rent-to-own structure, the program is Shariah-compliant. 

To qualify, all business owners need to provide is information on the single or multiple assets and business bank statements for the past 12 months. If the request is approved, Palm provides the full amount of capital via wire transfer. Lease payments are deducted automatically each weekday from the business bank account. 

Palm’s asset sale-leaseback program is ideal for retailers, such as grocery stores, dry cleaners, gas stations and electronics stores, as well as bakeries, delis and fast food stores. Palm also works with a variety of service companies, including Web developers, accounting and legal practices, medical offices, private schools, auto repair shops and information technology providers.

Dr. Shubaily, an internationally-recognized Shariah scholar and a citizen of the Kingdom of Saudi Arabia, has reviewed the Palm program, structure and agreements. He has approved them as Shariah-compliant and has issued a Fatwa to the company. Dr. Shubaily is a professor at the High Institute of Judiciary, Imam Muhammad Bin Saud Islamic University in the Kingdom of Saudi Arabia. He has extensive experience serving on the Shariah boards of banks and financial institutions in Saudi Arabia, the Arab Gulf countries, Malaysia, the United Kingdom and the U.S.

Palm National Partners serves the small business community. Palm was founded by a group of successful international entrepreneurs with extensive experience and background in financial markets. Palm’s asset sale-leaseback program provides working capital for small business. The company was founded to satisfy the growing need for small business capital and to help underserved small business owners.



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