I work as a freelancer, and have been selected as a candidate for the Advance Cash Program by the freelancing site due to my exceptional track record. Here is there terms:
[Company name] Cash Advance Program lets freelancers sell a portion of their future revenue in exchange for a one-time payment. [Company name] takes 40% of the revenue until they receive the total future revenue amount. The funding amount paid to the freelancer is considered a purchase and sale of future revenue, not a loan. The freelancer represents that they have the authority to enter into the agreement and that the information provided is true and accurate. The freelancer agrees to comply with all applicable laws and regulations.
For example, if they pay me $1.5K now, they'll be deducting $1.76K from my earnings, on a rate of 40% on every client.
I was only able to find one answer on a fatwa website: https://islamqa.org/hanafi/askimam/102637/business-merchant-cash-advances-for-future-receivables-are-not-permissible/
Their the Mufti likened it to a Bai Al-Dayn transaction, and deemed it haram. But I wasn't able to find it on any other fatwa site. I just want to double check this before I decide not to take this "loan".
Asked by Abbas
(143 rep)
Jan 31, 2023, 11:15 AM
Last activity: Jan 31, 2023, 11:56 PM
Last activity: Jan 31, 2023, 11:56 PM