SILVA, HERSHEY E. FIN01 CREDCO
MUDHARABAH- a profit and loss
FILIPINO BUYING (CREDIT) PRACTICES
1. HULUGAN/PAIYAKAN- the practice
of buying on installment and paying
within a long period of time.
2. TAWAD PRACTICE- the propensity
in asking for undeserved discount.
3. DAGDAG/BAWAS PRACTICE- the
practice of asking a little more.
4. SUKI SYSTEM- the process of
obtaining goods, services or loans
from a favorite buyer/seller.
5. THE PASIKLAB OR MATCHING
THE JONESES SYNDROME- the
propensity to follow the habits and
practices of one’s neighbors, friends
or relatives.
6. HOW TO USE SHAME OR HIYA
AS A TOOL OF COLLECTION
LOSS OF FACE OR SHAME MAY
CONSIST OF:
A. Embarrassing the person
B. Humiliating the person
C. Causing that person to feel inferior
and part of the crowd
D. Insulting the person
E. Placing a person in a ridiculous
situation
MUSLIM’S CREDIT AND COLLECTION
1. WADIAH- the deposit of goods with
another for safekeeping. The goods
may be used with or without reward,
but they must be guaranteed as their
return at a specified time.
2.
sharing arrangement between
capital owner and the managing the
capital. It is simple an equity
financing arrangement which must
specify the share of each party. The
capital owner is prohibited from
interfering in the management of the
capital.
3. MUSYARAKA- a rough equivalent
of venture capital. Both parties put
up capital, jointly manage and share
profit and loss according to a
predetermined ratio without regard
as to the amount of capital
contributed.
4. MURABARAH- a purchase and sale
method of lending with a non-
excessive pre-arranged and
specified mark-up between capital
owner and a buyer who may not be
in a position to pay immediately buy
may be on installment.
5. QARD HASON- a benevolent fund
or scheme whereby a borrower
rewards a lender at the end at the
agreed term of the loan.
GUIDELINES FOR DEBT FREE LIVING
1. Learn to face life’s (marital0 realities
2. Prepare and perform a plan for
paying debts
3. Don’t use leverage/borrowed money
for speculative risky transaction
4. Have a covenant to repay creditors
lenders faithfully