The implication of finance in business

Image courtesy of Serge Bertasius Photography at FreeDigitalPhotos.net

Hello readers! Finance is an important tool in business, when it is not managed well in business, it couldĺ lead to the end of the business. Today, I will be telling you about the implication of finance in business. There are different sources of finance and they all have different implications. Finance gotten from your personal savings is the best.

Finance gotten from friends and family is another good form of raising capital for business. Friends and family usually do not ask for interest, however, I have been informed in my research that some do ask for interest but lower interest if they do ask do not accept the loan. You should not deal with interest because it is bad for you. You have to make your business halal. With friends and family the risk associated with raising money from them is lower this is because if a business challenge occurs, some may let the money go because of the care they have for you. Others might patiently wait for you to bounce back before collecting there money from you. Close family members and friends should be the first you ask for loan to execute your business transactions. Make sure you return the money.

Everything should be done for the sake of Allah. Part of doing something for the sake of Allah means hoping for a reward from Him in this life and the Hereafter. Everything happens according to the will of Allah (you have freewill, therefore you are responsible for your actions).

Halal means anything lawful Islamically.

Other implications will be discussed in another article insha Allah. Keep checking my blog regularly. Cheers!

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Islam and Business Finance

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