Qardus conducts a thorough due diligence on all businesses to check their credit worthiness before listing them on the platform. A personal director guarantee is also taken against the facility to help recover the amounts outstanding if something goes wrong. Qardus also assesses the financial status of the director should it become necessary to seek payment from them under the terms of their guarantee.
Having said that, it is important to note that if there are more than 2 months of repayments outstanding, Qardus would appoint a third party debt collection team to handle the collection. The fees of the debt collection team are offset by any late payment charges that are paid by the business as specified in the commodity murabaha agreement. Qardus shall distribute the amount of any late payment charges, after deduction of the aforementioned costs, to such charitable foundations as may be selected by the Shari'ah Supervisory Board in its sole discretion.