Bai Al-Salam (بیع السَّلم)

Salam refers to a sale in which the buyer pays all the amount in advance but receives the produce (harvest) at a later date. This type of sale is only limited to in the field of agriculture. This practice was prevalent at the time of Prophet Muhammad as well and he approved it. With the help of this practice, the farmers who are poor and do not have the financial means to cultivate their lands are provided with the capital to do so.