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The term halal or permissible carries a comprehensive meaning which constituted the whole process in engaging any activity. A fried chicken for example is halal only when it is slaughtered islamically and prepared using halal ingredients. The same goes to others particularly business activity. A business is considered halal or Shariah-compliant when it used permissible financing method and involved in halal business activity. The basic premise is the Qur’anic propagation to embrace Islam wholly not partially. This paper will delve into one method of business financing namely Tawarruq. Particular emphasis is given to the use of such method in finance the retail business. The study implied that the instrument is useful for business community to get permissible financing amid the disputes by scholars on the underlying contract. Perhaps, further research is needed in scrutinizing the practice in order to improve the instrument

Tawarruq as a Useful Instrument to Finance Retail the Halal Way