Tawarruq

Tawarruq
Tawarruq is a sale of an asset to a purchaser with deferred payment. The purchaser then sells the asset to the third party on cash with a price lesser than the deferred price, for the purpose of getting cash. This transaction is called Tawarruq because when the purchaser bought the asset with deferred payment, he has no intention of using or getting benefit from it, but merely to facilitate him to obtain cash.