It is three-way contracts where the customer orders the financial institution to obtain the goods from the supplier. Upon the received order, financial institution buys the subject of product from supplier and making cost and profit margin pricing sells the product to the customer within fix rate instalments to be paid within the maturity period. The main feature is the customers are aware of the cost of bought product by Institution and Institution determines the profit margin through negotiation with customer.
Total price is usually paid in instalments.