Middleman in business transaction

Question ID: 28590
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As Salaam wa Alaikum

I have a business buying and selling goods, and rendering services, Can I do the following: I negoiate a price with my customer and he agrees, I ask the customer to pay my supplier directly for the goods first instead of me or I ask My Supplier to bill the customer directly.
Reasons for unusual transaction,

1.)Customer may NOT be willing to pay me upfront for goods.

2.)To save time, my delivery/admin costs.

3.)Do not possess sufficient funds/credit allowance to purchase goods from my supplier & to resell to my customers.

4.)The customer wants a VAT invoice in his Business name for VAT Claims, My business is not VAT registered yet as I’m starting out, My supplier is VAT registered.

My supplier puts my selling price e.g R 1000 on his invoice in the name of my customer (supplier adds his normal selling price e.g. R 800 plus my profit R 200 on the invoice).

The goods get delivered from supplier to the customer directly, it does not reach my possession.

After the transaction is complete between my customer and supplier, the supplier pays me my portion of the profit R 200 of the sale.

Basically, I’m the referal/middle man, getting money for my supplier & myself, customer may or may not know, I’m getting a profit from my supplier.

1.)Is it permissible or Haraam to sell in these ways in terms of goods/money not reaching me at during exchange?

2.)Is it permissible for my Business to sell goods to a customer in the following manner?

3.)Is the above scenario permissible with Services rendered(outsourced labour) instead of Goods sold.

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Asked on July 18, 2008 12:00 am
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Yes
Yes
Yes
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Answered on July 18, 2008 12:00 am