Istisna

Istisna is ideally suited for exporters and manufacturers who have export orders in the shape of Sight/Usance Letter of Credit/ Sight Export Contract (D/P)/ Usance Export Contract (D/A).

It is a special kind of sale transaction where manufactured goods are transacted before it (the good) comes into existence. It is an agreement of sale at an agreed price whereby the purchaser places an order with agreed price for manufacturing/ construction and assembling anything to be delivered at a future date. Istisna can be used to cater to the working capital requirements of a business involved in the manufacturing of goods as well as for long term projects.