Debtor asking the creditor for a discount on early repayment of the loan

Q. I’m in the car business and I often I have to pay my accounts within 30 days from the date of invoice. Can I request my suppliers to give me a discount off the initial invoice if I pay them earlier, within 20 days? If they do, will this be allowed?

A. If a creditor offers a discount to his debtor, in the case of an early repayment of the loan to the creditor, the discount offered will be permissible.

Thus, in the enquired case, it will be permissible for you (debtor) to request a reduction in the credit owed to your suppliers (creditor) for repaying the loan earlier than its due date. If there is any reduction in the loaned amount, the repayment of the reduced amount will be permissible.

Allah Ta’ala Knows Best

Mufti Ismaeel Bassa

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