As an alternative to Debt Financing, there is Islamic Financing.  Islamic Financing promotes and develops the application of Islamic principles, laws and traditions to transactions of financial, banking and related business affairs.  Islamic Finance embraces strong core values and universally beneficial characters.  Its fundamental requirement is that it confines its activities to that which is supported by an underlying economic transaction.  The Islamic principles require that the financial transaction be accompanied by genuine trade and business related transactions, therefore providing high level of disclosure and transparency.  It reduces the potential for information gaps and for mispricing of risks and thus avoids the elements that could contribute to uncertainty and disruptive market conditions.

The main principles of Islamic finance are the prohibitions of interest (usury) in all transactions and, the undertaking of business and trade activities must be on the basis of fair and legitimate profit.  Payments are fixed for the entire term and where relevant, incorporate cost-plus terms.  There are minimal service fees and no interest charges.

Islamic Financing

As an alternative to Debt Financing, there is Islamic Financing.  Islamic Financing promotes and develops the application of Islamic principles, laws and traditions to transactions of financial, banking and related business affairs.  Islamic Finance embraces strong core values and universally beneficial characters.  Its fundamental requirement is that it confines its activities to that which is supported by an underlying economic transaction.  The Islamic principles require that the financial transaction be accompanied by genuine trade and business related transactions, therefore providing high level of disclosure and transparency.  It reduces the potential for information gaps and for mispricing of risks and thus avoids the elements that could contribute to uncertainty and disruptive market conditions.

The main principles of Islamic finance are the prohibitions of interest (usury) in all transactions and, the undertaking of business and trade activities must be on the basis of fair and legitimate profit.  Payments are fixed for the entire term and where relevant, incorporate cost-plus terms.  There are minimal service fees and no interest charges.

Challenges of a New Technology Company and the Benefits of Financing through Conventional Borrowing or Islamic Financing

In emerging and high technology markets, companies are characterised by heavy focus on R&D; limited revenue streams; high burn rates of cash; limited tangible assets but significant intellectual property; and shareholders with high return expectations.  Maximising shareholder's returns is therefore important for technology companies, including those in the life sciences and biotechnology sectors.

As a company grows, its funding requirements expand with development and implementation of new products and businesses. Additional funds may be required for equipment and infrastructure, for working capital and for project financing.

As such, at an appropriate stage of development, Islamic financing as provided by MDV is a beneficial source of capital. Islamic finance offers the following benefits to shareholders and technology companies:

-Justice and Fair Dealing-Free marketing and Fair Pricing-High Level of Disclosure and transparency-Allow for proper cash flow management and budgeting -Free from Dharar (Detriment)

MDV facilitates the establishment of an optimal capital structure for emerging growth companies through maximising the use of Islamic finance that is coupled with competitive costs. As we are a knowledgeable and experienced  financier of technology companies,our financing structure, along with its terms and conditions, do not constrain your operations.