Is it okay to manage and work with Credit related data?

Asslam-o-Alaikum Brother/Sister,

I hope you are well and safe.

I like to know if i can manage and work with the credit data which is being offered by third part company.

Process Background

  • Distributor sign up for credit through a third-party company
  • Distributor collects money (cash/debit/credit card transactions) using our system, transaction value is then saved to database
  • Our backend process creates a payment file and send that to Third Party company (who offered the credit to distributor in the first place)
  • Third part company applies the amount to customer account (deduct the credit amount)

As a System Developer can I work on the following new requirement;

Within the current process, now we need to pick up the additional file from the third-party FTP site and add the account and payment details to our database.

Jazak Allah


May Allah bless you

I am sorry but can you elaborate more on the process please as I did not understand much from it:

  • what kind of distributors are we talking about,
  • from whom and why distributors are collecting money
  • please elaborate on point 1
  • point 3 and 4 did not make sense to me

Kind regards

Distributor is a franchisee who buys and sells hardware tools to car mechanics in garages. We provide him a software to run his business, it’s a point of sale software where he can sell and order items to end customers in garages.

He buys tools from my company.

Distributor can start a business by taking loan or credit from the third party company. It’s Optional.

My company is facilitating in two ways;

  1. By giving distributor an option to opt in for a loan
  2. By sending his sales transactions to credit company so they can be applied on his credit account.

I hope it helps.

I have been asked to work on point 2 mentioned above. I have 2 questions on this;

  1. Should i code the new requirement?
  2. If i shouldn’t then can i review others code who will be working on it and push their changes to live website?

Jazak Allah

My sense of what you’re saying is that you’re purely providing the tech behind the proposed business - and you work for a third party. As such this is technically fine in my view. However if it starts looking like the vast majority of your customers are doing things related to finance then I would start considering a sideways move into something else.

Jazak Allah for the reply.

Brother, what do you mean by third party in your reply?

I don’t work for the company who provides credit to end users instead i am part of the franchiser.

Here is the business Model

  • Franchisee (same as Distributor) comes to Franchiser and ask for Credit Opt In
  • Distributor send his credit request to third party Credit company lets say Bank
  • Bank offers Credit / Loan to Distributor
  • Distributor uses POS system to record all sales (this system is provided by Franchiser)
  • Those sales picked up by Franchiser’s back end system and send to Bank so the amount can be deducted from the loan. i.e. distributor had £1000 loan and he made £100 sale today so after the payment is applied to his account , he only owes £900 now.

In the above scenario, distributor doesn’t have to take loan from the Bank.

I will be working on the back end system which picks and send payment data b/w Bank and my company (Franchiser) .

If you can share the specific link of your company that would be helpful. Or even a competitor just so I can look into it.

High level, it sounds like you are in fact working for a non-sharia-compliant business so I would long-term aim to transition out. However technically the Imam Abu Hanifa view is that as long as you are not proximate to the actual haram, then your income is halal even when wokring in an organisation engaged in some haram activity.

Brother i have emailed you all the details. Let me know if you need more info on this.

Am I correct to assume that these loans are interest based loans?

Yes. They are interest based loans.

Asslam-o-Alaikum, just wondering if Mufti Billal had a chance to review this?

Jazak Allah


May Allah bless you.
The task of coding the new requirement is problematic in my opinion. You are helping/promoting haram transactions directly.

And Allah knows best!