An in-depth exploration of Alternative Finance Arrangements (AFAs), a financial term applied in the UK Finance Acts to lending structures complying with Islamic finance principles, their historical context, types, significance, examples, and related terms.
A deferred payment plan is an arrangement where the payment for goods or services is delayed to a future date, providing financial flexibility to buyers.
A direct loan is a financial arrangement where the borrower has a direct relationship with the lender, without any intermediaries. This type of loan typically offers more streamlined communication and potentially more favorable terms.
Leasing is a financial arrangement where one party pays another for the use of an asset over a specified period, offering an alternative to ownership and financing. Commonly applied to office buildings and physical assets, leasing differs from royalties, which relate to intellectual or natural resources.
Project Financing is a financial arrangement where funds raised for a specific project are secured on the project itself and its anticipated earnings, rather than on the general assets of the company involved.
