Islamic Modes of Financing

Business firms require large financial resources to carry out production and related business operations. Such large scale monetary resources are sometimes beyond their own capacity.
To obtain them it is inevitable to solicit the cooperation of other individuals or organizations.

Islamic Economics provides several modes to secure such financial resources of which the following are particularly noteworthy

Sharakat (Partnership)
Modarbah
Bai Salam
Bai Marabaha
Bai Muajjal
Ijara

The Arabic Word Bai means purchase or sale.

Salam-Its noun is Islam, which means payment of the price before delivery of goods.
So Bai Salam denotes that mode of transaction or contract of sale in which price is paid before the delivery of goods.
The word salf is also used as a synonym for salam. However, salf conveys two meanings: One, to give a Qard Hasan. The second meaning is the same as that of Salam.
Bai Salam is a lawful transaction
Since it is an important need in everyday dealings, Shariat has sanctioned it
The testimony to its legitimacy is provided by the Holy Book and the sunnah, precedent of the illustrious companions and consensus of the jurists of the Ummah.

Allah Almighty says in the Holy Quran:

“O Believers! When you contract a debt for a fixed term, you should put it in writing.” (2:282)
 
Ibn-e-Abbas interprets this contract as contract of Salam(in which the payment of price is prompt but the delivery of goods is deferred).
In sunnah, it is reported from the Apostle of Allah (SAW):

“Tradition reports that the Apostle of Allah (SAW) has forbidden the sale of everything which is not in the possession of the vendor, but he made an exception in the case of Salam.”

According to a tradition recorded in Tirmidhi, the Holy Prophet (SAW) said:

“When a man makes prompt payment for goods to be delivered later, the parties should settle the weight and measure and the date of delivery of the goods.”
Artcile in this context implies an attribute

According to Hanafi School:Bai salam should contain 2 articles 1. Offer 2. Acceptance

According to other jurists:
1. Offer
2.Acceptance
3. Vendor
4. Buyer
5. Goods
6. Price
Since Salam is a form of sale, its articles are same as an ordinary transaction of sale.