LOLC Al-Falaah launches Wakalah Future-Cash factoring solution

LOLC Al-Falaah, Sri Lanka’s leading provider of alternate financial solutions, announced the launch of Al-Falaah Wakalah Future-Cash, a pioneering Shariah-compliant alternative for factoring, invoice and cheques discounting facility, designed to transform business financing. 

This groundbreaking financial solution empowers businesses to elevate and realise future cash flows in real-time, while maintaining adherence to ethical financial principles. Setting a new benchmark in Sri Lanka’s Islamic financial services sector, this initiative strengthens LOLC Al-Falaah’s commitment to innovation and excellence in the alternate finance arena. 

Unlike conventional factoring, which relies on interest-based returns against receivables, LOLC Al-Falaah’s Wakalah Future-Cash Today product is structured under the Wakalah-Bil-Istithmar concept, ensuring full compliance with Islamic economic jurisprudence. Through this model, LOLC Al-Falaah provides capital infusion into business operations in exchange for a pre-determined anticipated profit return, eliminating interest-based transactions. Businesses are appointed as agents to deploy these funds within their operations, with surplus earnings allocated as a performance incentive. 

LOLC Al-Falaah Head of Alternate Financial Services Shiraz Refai said, “As Sri Lanka embarks on a path of economic resurgence, businesses require the right financial instruments to capitalise on emerging opportunities. As a trailblazer in the alternate financial services sector, LOLC Al-Falaah has identified a critical gap in the bills-discounting and factoring industry. The launch of LOLC Al-Falaah’s Wakalah Future-Cash Today product presents a strategic solution that enhances liquidity and working capital efficiencies while adhering to Islamic financial principles. This innovation reaffirms our leadership in shaping Sri Lanka’s alternate financial services landscape and empowering the SME sector.”

LOLC Finance Head of Factoring Deepamalie Abhayawardane said, “For businesses seeking Islamic factoring solutions, LOLC Al-Falaah’s Wakalah Future-Cash Today product offers an efficient, participatory financing model that aligns with both financial requirements and ethical considerations. We recognise the diverse challenges businesses face and our tailored solutions are designed to improve cash flow, mitigate credit risk and drive sustainable growth”.