Assalamualaikum
May Allah SWT reward you all for all your good work .
My business partners want to take out an interest based loan against the company.
When we set up the partnership it was on the basis that we don’t take any interest based loans. This was made very clear at the beginning.
They now want to take on an interest bearing loan against both our current long standing business (approx 10years they have been running ). They will use this to buy new branches.
They say the loan will be repaid by them and that I do not need to be involved in the loan agreement.
However the loan is invoice financing , against the business at both our current branches, for 2 months worth of income at both branches.
I would not be benefitting from the loan . However as I’m a partner I would be liable for the debt and interest. I have told them not to go ahead as per our agreement about not involving interest. They know it’s haram to but still want to take out the loan as there is a large benefit to their income through it .
I own 50% in one branch and 33% in the other branch. They are setup as standard partnerships (not LLP). These are healthcare related businesses so only a few specialised companies provide these kind of loans to companies like ours. I could contact my business partners and these companies saying I do not want to go ahead as i do not give consent for the loan to be taken against business partnerships involving me .
What should I do?