Murabaha:

Murabaha is a method of asset acquisition finance. It involves a contract between the financing company and its client for the sale of property at a price that includes an agreed profit margin, either a percentage of the purchase price or a lump sum. The financing company will purchase the goods as requested by its client and will sell them to the client with a markup.

The profit mark-up is fixed before the deal closes and cannot be increased, even if the client does not take the goods within the time stipulated in the contract. Some Islamic financing companies use an agency arrangement, where the client takes delivery of goods from the seller as agent of the financing company. Payment will usually be over time by installments.