Is It Permissible To Insure Debtors?

Question ID: 16044

Assalaamu alaikum Mufti

Is it permissible to insure a company’s debtors book against people not paying? There are some customers where the risk of giving them credit is high e.g. building contractors but the nature of their business is such that they are unable to pay COD. If not permissible, what other alternatives are there?

Please advise.

Jazaakallah Khair

Marked as spam
Asked on August 17, 2015 11:16 am
Private answer

Not permissible. Release goods slowly.
Minimise your risks. Do not give too much credit.

Marked as spam
Answered on August 31, 2015 4:35 pm