Murabahah is a contract of an asset at the cost price plus a defined and agreed profit mark-up (cost plus profit sale).
Tawarruq is used for obtaining a cash financing facility, where a customer buys an item on credit from the Islamic bank on a deferred payment basis, based on Murabahah and then resells it for cash to a third party. This way, customers can obtain financing without taking an interest-based loan.