Ethical financing that supports your growth – not debt

How does Daily Advance align with Islamic finance principles?

At Storfund, we believe that business funding should be transparent, fair, and rooted in real economic activity. That’s why we do not offer loans or charge interest. Instead, our Daily Advance product is built around the purchase of receivables – cashflows you have already earned and are owed by online marketplaces.

This structure allows businesses to access funds sooner without taking on debt, while aligning closely with widely recognised principles of ethical and Islamic finance.

Not a loan – a purchase of receivables

Daily Advance is not a credit facility. Storfund does not lend money to sellers, and sellers do not borrow from us.

Instead, we purchase receivables: amounts already owed to you by marketplaces such as Amazon, TikTok Shop y Back Market for completed sales. Once purchased, those receivables are legally transferred to Storfund, and we provide you with early access to the cash.

This creates a commercial relationship based on real trade and completed transactions, rather than debt.

How the structure works

Our relationship with sellers is governed by clear, transparent commercial agreements:

1. Early Purchase Agreement (EPA) – establishes the sale of receivables and defines how we assume the risk of the marketplace.
2. Terms & conditions – define our process and responsibilities, and the limited situations (e.g., misrepresentation or data access breach) where we may have recourse to you personally.
3. Service agreement with the payment service provider – ensures all funds flow through regulated payment rails.

Importantly, once receivables are sold, Storfund assumes the risk of marketplace non-payment, including insolvency or delayed payout. We do not take on the risk of your underlying business performance or future sales.

Why this is interest-free and ethical

This model aligns closely with Islamic finance principles and bears strong resemblance to a Specific-Wakalah investment structure:

• In a Wakalah, customers entrust funds to an institution (Wakeel) to invest in a Shariah-compliant activity. The return to the customer is based on profit from that activity, not fixed interest.
• Here, the ecommerce business acts as the investment agent. You generate revenue through marketplace sales.
• Storfund acts like the investor in a Wakalah arrangement. We place funds with you by purchasing your receivables and receive a capped return (our fee), derived from the actual performance of the receivables – not interest.

In this context:

• The ecommerce business generates revenue through genuine marketplace sales
• Storfund provides capital by purchasing receivables
• Returns are capped, transparent, and linked to real transactions
• Credit risk of the counterparty (the marketplace) is borne by Storfund

The seller’s responsibility is limited to ensuring the authenticity of sales data and the absence of fraud-reflecting principles of amanah (trust) embedded in Islamic commercial ethics.

Transparency and regulatory compliance

From a regulatory standpoint, Daily Advance is structured as a true sale of receivables, not a loan or credit product. This approach has been reviewed under U.S., UK, and EU legal frameworks and is specifically designed to eliminate recourse to the seller, except in limited, clearly defined breach scenarios.

The result is a funding solution that prioritises transparency, ethical alignment, and real economic value-supporting business growth without interest or debt.

As always, customers should seek independent religious or professional advice where required. Storfund remains committed to building financing products that are clear, responsible, and aligned with the values of modern global commerce.