Frequently Asked Questions and Term of Services

Welcome to Amanah Ventures. We have tried to answer frequently asked questions but if you think we should add some specific term of services here, then feel free to contact us.

Raising investment means getting capital from investors to grow your business, in exchange for a profit share or ownership instead of interest-based debt.

No, a loan must be repaid with interest, while investment is shared risk where investors earn through profit sharing or ownership.

On Amanah Ventures, you can raise Shariah-compliant asset-backed financing, franchise-based investment, or equity investment.

Apply through Amanah Ventures to raise investment, and after our due diligence and screening, we share your business with serious investors in Pakistan who match your business and risk profile

You need clear financial statements and a strong pitch deck, and Amanah Ventures can prepare both for you.

We charge between 100,000-3,000,000 depending upon the size of the business. These charges will need to be paid upfront before availing of the service. Although, if the deal gets through, we will deduct the charges you have paid to us from our brokerage commission.

The most common mistakes are weak or missing financials, unrealistic valuations, no due diligence preparation, and poor transparency with investors.

It is a Shariah-compliant funding model where capital is secured against real business assets, not interest-based debt.

Investors fund a verified business as silent partners;, the founders run operations, and returns are earned through profit sharing.

Real business assets such as inventory, equipment, or confirmed purchase orders can be used.

Amanah Ventures (Private) Limited is incorporated with the Securities and Exchange Commission of Pakistan (SECP). We work as a financial advisor and don’t hold any money from investors. We advise vetted businesses to investors, and investors directly transfer the money to the business if they think it’s the right fit for them after getting the information from us. Since we are not holding investors’ money, we don’t need an NBFC or other banking license.

Before your funds are deployed, we will identify the proposed business and provide the transaction-specific information available for investor review, including:

– Business name and nature of operations

– Purchase order or underlying asset details

– Buyer and supplier information

– Financing amount and tenure

– Agreed Murabaha profit and repayment schedule

Any commercially sensitive documents will be shared subject to appropriate confidentiality arrangements. Your funds will not be deployed into an unidentified business without your consent.

Our investment model operates under Wakalah, where Amanah acts as the appointed agent.

The intended arrangement is for investment funds to be used toward the purchase of identified assets, including direct supplier payments where applicable.

[Investor directly transfers the funds into a specific business account, not into the Amanah Account.]

Post-dated cheques are part of our transaction security arrangements. They are generally obtained from from the business on the name of investor,

The final transaction documentation will specify the cheque issuer, amount, dates and the obligations secured, with a corresponding cheque schedule where applicable.

Monthly

As mentioned in our meeting, if we are giving you 16% yearly profit, then its mean we are charging more than 16% from the business; the profit above 16% from the business is our fees

The seven-day termination notice should not be interpreted as a guaranteed right to withdraw capital from an outstanding Murabaha transaction within seven days.

Your current financing will complete as per the schedule and then you can withdraw your funds.

It is 15% of the capital amount or less, depending on the situation. We will fix the point just to avoid confusion from the onboarding agreement.

Our investment model is based on Wakalah and Murabaha principles with sharia certificate.

You may review our Shariah-compliant investment structure here:

https://amanahventures.pk/sharia-complaint-asset-backed-investment/ 

We share the documents of the company before investment, as mentioned earlier.

We can also explore arranging a reference conversation with an existing investor who has completed an investment cycle, subject to that investor’s consent.

Operating history and funds currently placed

– PO/asset-backed financing operations commenced: 3 years

– Current outstanding investor capital: 500M PKR

NO

The company audit depends on company to company. We do our own due diligence on the company and make report to make sure they have the repayment capacity. We can share the specific company details when presenting you for financing purposes.

Our screening process includes financial, operational, legal and commercial due diligence.

This generally covers business operating history, banking transactions, financial performance, tax documentation, existing liabilities, market reputation, customer and supplier checks, site visits, guarantor assessment and repayment capacity.

Our published criteria emphasize established businesses with verifiable turnover, financing linked to underlying assets or purchase orders, and security arrangements appropriate to the transaction.

The main criteria as we mentioned in our meeting, are that the business should be 7 years old, should have 3 years banking data to make sure their yearly revenue etc. revenue etc.

No, because it’s not an equity investment. It’s financing where you are not financing a huge amount in a company. If you have 10M, then you will be financing 4-5 companies; that’s why it’s not possible for us to arrange meetings of the business owners with 10-15 investors for each financing. But we will share all the details of the business. If you are willing to invest 10M in one business, then we can arrange the meeting with the business owner

As mentioned in our meeting, we don’t only do PO financing; we do inventory financing as well. For POs, we check previous POs from the last 3 years and their delivery channel to make sure the PO issuer has a strong relationship with the business. We also cross-check the PO issuer from our network. PO issued by government and private organizations. It’s not fixed. It varies company to company

For the proposed business, we can provide a transaction-specific repayment summary, including:

– Number of completed financing cycles: 69

– Whether payments were received on schedule: Yes

– Any historical delays: Two companies delayed the payment for 2-3 months due to geniun issues

In our onboarding agreement, we have made the splits: investors will get a lower return where we are confident that payment won’t be delayed, and similarly, investors will get higher returns where there is a chance that payment will be delayed. So its investors choice which option they choose

  option they choose

It did not happen yet with us.

If a buyer rejects goods or cancels an order, the consequences depend on the underlying purchase and Murabaha contracts, including ownership, delivery, acceptance and the stage at which the transaction occurs.

Amanah would coordinate with the relevant business, supplier and buyer to pursue the contractual remedies available.

The existence of a purchase order does not eliminate commercial or repayment risk.

Answered in point # 27

No default so far, Alhamdulillah. But normally, as per our discussion with lawyers, the recovery takes 3-4 months if there are some issues

Under our published Wakalah–Murabaha process, investors generally transfer funds directly to suppliers, while Amanah coordinates the purchase, possession, onward sale and documentation.

Depending on the transaction, supporting documents may include purchase orders, supplier invoices, purchase and sale documentation, delivery evidence and buyer payment confirmations.

The exact document-sharing package will be agreed before investment, subject to confidentiality and third-party restrictions.

Yes, in your account as per the schedule in the specific financing agreement. The specific payment dates will appear in the transaction schedule. Actual receipt may be affected by business payment delays.

Investors may choose not to participate in a subsequent financing cycle after their existing transaction has been completed and their capital has been recovered.

Any reinvestment or rollover will require the applicable investor authorization and documentation.

AS mentioned in our meeting, early exit is not possible. There is a workaround, but not guaranteed

Yes

It depends on business-to-business. Normally, local purchase and manufacturing are not insured. Imported items have insurance

Following a completed Murabaha sale, the financed goods may no longer belong to the investor, and recovery rights may instead relate to the outstanding receivable, valid guarantees, and any separately created security interests.

To secure the investors, we take PDCs from the business on investor’s name and also take the receiving on the business letterhead stating that they take money from the investor and they will return the money. So, in case Amanah does not operate, the investor has an option to deposit a PDC for capital Amanah Ventures operates through a registered corporate entity, rather than solely through an individual.

No

The final transaction documentation can be executed using the legally appropriate stamping and signing formalities.

All our investment and financing transactions are documented through formal agreements on stamp paper.

In the case of Asset-Backed and PO Financing, we obtain company-issued post-dated cheques (PDCs) as security for the capital repayment. The transaction is also supported by the relevant purchase and sale agreements.

These arrangements provide contractual and documentary protection; however, no investment is entirely risk-free, and recovery is subject to the circumstances of the transaction.

We conduct a detailed due diligence process and business valuation before proceeding with an opportunity. Our assessment generally includes:

  • Review of the business’s previous three years of bank statements.
  • Examination of financial statements, Profit & Loss accounts and other financial records.
  • Collection and review of approximately 35–40 business related documents.
  •  Assessment of the business’s financial position, operations and repayment capacity.
  • Physical visits to the business premises and, where required, the business owner’s residence.

Based onthese findings, we assess the overall risk level of the opportunity. However, business failure cannot be predicted with absolute certainty.

No. You are not obligated to participate in any subsequent funding requirement. We communicate the investment tenure and relevant terms. The agreed tenure is also mentioned on our portal.

Your investment will continue according to the agreed tenure and repayment schedule. Once your capital is returned, you may choose whether to reinvest in another opportunity. Reinvestment is entirely your decision.

Yes. You will receive a due diligence report prepared on the basis of the financial statements, bank statements and other documents provided by the business.

The report generally includes financial analysis, business performance, profitability, financial position and key observations identified during the due diligence process.

Amanah Ventures manages communication and coordination with the business on behalf of the investor. The investor’s agreement is executed with Amanah Ventures rather than directly with the business owner.

For confidentiality and transaction-management purposes, direct access to the founder and internal business records is not generally provided. Our responsibility is to coordinate with the business and follow up on the agreed capital and profit payments.

This applies to Equity Investments only. The shareholding structure and ownership documentation are determined according to the legal structure of the company and the agreed transaction terms. The applicable share transfer, corporate documentation and SECP requirements will be addressed as part of the transaction.

In Asset-Backed and PO Financing, there is no share transfer. These transactions are structured through purchase and sale agreements, following the Murabaha financing model.

In Asset-Backed and PO Financing, Amanah Ventures acts as a transaction facilitator and mediator. We do not manage or participate in the company’s internal accounting operations because the transaction is based on a purchase and sale arrangement. In Equity Investments, we remain connected with the business after the investment. We arrange periodic meetings with the business to review its financial performance, accounting position and Profit & Loss statements, according to the reporting arrangements agreed for that particular deal.

Reporting arrangements depend on the nature of the investment and the terms agreed with the business. For Equity Investments, reporting may be monthly or quarterly, depending on the agreed arrangement. For Asset-Backed and PO Financing, regular business-performance reporting is generally not applicable because the transaction is structured as a purchase and sale rather than an equity investment.

Access to internal business documents is subject to confidentiality arrangements and the terms agreed for each transaction. These documents are not routinely shared directly with anyone in case of Asset Backed/ PO financing. However, in Equity Investments, the reporting arrangements agreed with the business will determine the financial updates and performance information made available.

For Asset-Backed and PO Financing, regular business reporting is not part of the transaction structure.

For Equity Investments, the business’s reporting obligations are established through the relevant agreements. Amanah Ventures remains involved and follows up with the business regarding its agreed reporting responsibilities.

Our approach is to arrange additional funding through new investors rather than automatically reducing the existing investor’s agreed ownership percentage.

For Equity Investments, any additional funding and its impact on existing shareholding will be subject to the agreed transaction structure and applicable corporate documentation.

Our involvement does not necessarily end once the transaction is completed.

In Asset-Backed and PO Financing, we remain connected with the business for coordination and follow-ups regarding the agreed capital and profit payments.

In Equity Investments, we continue coordinating with the business through periodic meetings and financial-performance reviews, according to the agreed arrangements.

In Equity Investments, business losses are reflected in the value of the shareholders’ equity according to their respective ownership percentages, subject to the company’s legal structure and applicable agreements.

The exit strategy and conditions for selling or transferring equity depend on the individual business and investment opportunity. These terms are discussed and agreed upon before finalizing the investment.

Yes. The exit mechanism, applicable conditions and relevant terms are discussed at the beginning and documented in the agreement signed for that particular investment. These arrangements may vary from one business to another.

We appreciate your point and understand your perspective. However, Amanah Ventures commission structure is established under the company’s existing policies and procedures. Therefore, we are unable to make individual adjustments to the applicable commission percentages.