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Investing as a silent partner and Ribbis

Question:

  1. If one invests money as a silent partner receiving a percentage of sales or a salary, with no intent of it being a loan, is a heter iska necessary ?
  2. If one gives ones own wife money to start a small business and demands a percentage of sales would the same law apply between spouses ?

Answer:

  1. Being a silent partner means that he has liability, and if the business loses money he will also lose money. That is not a loan, but a business investment, and there is no need for a heter iska. On a practical level though when entering such a deal, there can be numerous factors which might be ribbis, therefore it is best for the two partners to sign a Heter Iska.
  2. It is hard to understand your question, and I would need to know more of the specifics of what is transpiring between the two of them.

 

Best wishes

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1 Comment

  1. If there is an idea of a wife borrowing money from her husband, there can also be ribbis.

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