COMMUNITY
What is a Community?
Introduction
There are many different ways of identifying communities. The following definitions and examples will give you an idea
about the various ways we use the term community.
A community may be a:
1. group of people living in a particular local area of which they have common ownership. This type of community
includes villages and districts where a particular clan of people holds communal ownership of the land and its
resources. Another example of this type of community is w hen a group of people purchase and/or obtain land and live
on it as a community sharing its resources and governed by an agreed set of rules and principles to ensure peace and
order within the community. An example of this type of community is the group of Banabans who were relocated to the
island of Rabi in Fiji from their home, Ocean Island, because it was depleted by phosphate mining;
2. a group of nations having common interests e.g. the Commonwealth of nations which consists of 54 nations
voluntarily agreeing to be a community of nations with common interests;
3. residential district where people live in private residences. This residential district is usually a small town or part of a
city that is composed mostly of residents. The latter is commonly referred to as a residential suburb and may consist of
a diverse ethnic population and people of all walks of life and religious beliefs;
4. group of organisms sharing an environment.
Important features of a community
1. Community commonly consists of individual persons who, although are separate human beings, are interconnected
and interdependent in various ways and often have similar values and aims. In this way, a crowd or established group
can operate together as a community separately from the life of each of its members. That is, a community is as much
the collective of individuals who make it up, as well as the separate lives of the individuals within it.
2. Community may create a bond between some people and excludes others. Thus community implies and creates a
boundary between us and them, inside the group and outside the group.
3. This boundary is usually marked in symbolic ways. There are many types of symbols or features which mark the
boundaries of community - flags, tribal totem (or sign), provinces, dances, languages and so on. We have the Samba
community, the Tanna community for example.
Different Communities
When we think about communities most people think about a particular place or a geographical location for
the community. The geographical community can be a town, a suburb, or even a small section of a suburb. There
might be a few communities in the same town. There are other times when a town might be only part of a community,
such as when the community includes the rural areas outside town, or two towns are closely linked.
All communities are dynamic in nature. They act, interact, evolve and change as a result of larger political
and economic forces as well as internal and external forces. A community and its meaning might vary with each
member’s unique understanding. There can be many kinds of community such as:
1. Local community
2. Ethnic community
3. Community of scholars, intellectuals
4. Community of values
5. Professional community e.g. Legal community; medical community
6. International community
7. Religious community
8. Polynesian/Melanesian/Micronesian community
9. Political community
How do Communities develop?
In the past and to a large extent today, communities were and are developed by their governments and
leaders, that is, in a top-down way. For example, in Tonga, the monarch constitutionally exercises the power to dictate
policy and purpose throughout the Kingdom. Through appointments to the Cabinet, who are exofficio members of the
Legislative Assembly, he is not only able to implement his agenda, but can also create and change law. Even the
powerful Tongan nobility is subservient to the King because he has the power to dissolve their representation in the
Legislative Assembly and fill their ranks with members who are loyal to him.
Tonga's social structure is essentially broken into three tiers: the king, the nobles, and the commoners.
Between the nobles and commoners are Matapule, sometimes called "talking chiefs," who are associated with the king
or a noble and who may or may not hold estates.
Obligations and responsibilities are reciprocal, and although the nobility are able to extract favors from
people living on their estates, they likewise must extend favors to their people.
Bottoms up or grass roots approach
Status and rank play a powerful role in personal relationships, even within families. Communities are now
increasingly developed in a bottom-up or grassroots approach. In this approach, individuals and communities
participate and take responsibility for improving their lives. People are not seen as passive members but rather as
active agents.
Community development therefore can be seen as a process that allows people to decide for themselves
what they need and what they are capable of, then to implement a collective plan of action, and to monitor and
evaluate the results. The ultimate aim is to empower the community to develop long term results and rely upon
themselves.
Reading 1.1
“…community development has to look both ways: not only at how the community is working at the grassroots, but
also at how well do key institutions respond to the needs of local communities". This can be in the form of community
development facilitators such as community nutritionists, health workers, environmentalists, agricultural extension
workers and so on, who provide the link between communities and government departments or other community
development agencies.
Another significant point made in the reading is that “Community Development is about the active involvement of
people in the issues which affect their lives. It is a process based on the sharing of power, skills, knowledge and
experience” to improve the conditions in a community.
Strengths of the Community
In the past, when we addressed issues, we typically focused on “the problem” or what is lacking or
needed. But an important element of community development is to be aware of the capacities (what they can do)
within the communities, not just its needs and problems. When working with individuals, this is called a strengths-
based approach. This approach focuses on developing the skills and qualities of the individuals to enable them to
cope with their problems and challenges in meeting their goals in life in a constructive and positive way. In the same
way the strengths-based approach works with individuals, it can also work with communities by building on their
collective strengths, how they view the situation and their preferred solutions.
Summary
In this unit you learnt about communities and their various features. It examined how communities are different
including your community. There were various features of community that existed in the past but are no longer there.
These changes are a result of development within the community. Many things continue to need to be developed and
changed to cope with the changed needs of life now.
Feedback on Activity 1.1
3. List 5 features that makes up a community
• A group of people living in a particular local area of which they have common ownership.
• A group of people live in a community sharing its resources and governed by an agreed set of rules and principles.
• A group of nations having common interests e.g. the Commonwealth of nations.
• A residential district where people live in private residences.
• In biological terms, a group of organisms sharing an environment.
4. List 5 types of communities
• Ethnic community
• Community of scholars, intellectuals
• Community of values
• Professional community e.g. Legal community; medical community
• International community
• Religious community
• Polynesian/Melanesian/Micronesian community
INTRODUCTION
This chapter discusses principles and processes in community development. The goal of community development is to
bring positive change in the people’s socio-economic, environmental, cultural, religious, and political lives. Community
development is a process that brings people together to address social and community issues affecting them. Some
examples of community initiatives are skill enhancement for better livelihood opportunities, infrastructure development
such as roads, schools, and parks construction, quality of education and health services in a community, and
addressing poverty, inequalities, racism, homophobia, and marginalization through community organizing and
advocacy. Some may argue whether all community development works aims to address social issues such as poverty,
inequality, and systemic issues. Some community development work may not directly focus on the problem/issue but
instead maintain ongoing relationships and infrastructures.
While working in community development, I have had the opportunity to work with rural, urban, and Indigenous
communities and various social groups in the developing countries in Asia and Canada. One thing I learned is that
each community context and its issues and initiatives are unique. The success or failure of a community
project/program depends on who identified community issues, how community issues are analyzed, who developed
principles, frameworks and actions for community change and how the project/program is implemented.
1 Goal: Education for All” campaign. The author and his ActionAid colleagues organized this campaign with youth,
local communities, and partners in 26 Districts of Bangladesh. Photo : Mahbub Hasan, Year: 2010
1. PRINCIPLES IN COMMUNITY DEVELOPMENT
Promote Community Leadership and Ownership
The most important principle is, through the community development process, to actively working with the community
to increase leadership capacity, skills, confidence, and aspirations.. Our work is to help community members
understand the economic, social, political, environmental, and psychological impact of alternative solutions to the
problem (Michigan State University). The community has the primary responsibility for decision-making (Parada et al.,
2012). This decision-making includes issue identification, planning, implementation, and resource mobilization to solve
agreed-upon problems by emphasizing shared leadership and active citizen participation. Therefore, the community
members are primarily responsible for initiating community change work and should own it.
Secure Human Rights
The community initiative should focus on human rights principles. The community and practitioners must adopt the
Universal Declaration of Human Rights in their work. The first three articles of the Universal Declaration of Human
Rights states that “All human beings are born free and equal in dignity and rights”; “Everyone has the right to life,
liberty, and security of person,” and “Everyone is entitled to all the rights and freedoms without distinction of any kind,
such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other
status “. The Universal Declaration of Human Rights must shape our collective work with the community because this
instrument allows community and Community Development workers to identify their challenges and barriers. This
instrument (Universal Declaration of Human Rights) also provides community and Community Development workers
provided legitimate/lawful grounds for addressing community issues, human development, and fighting against
poverty, discrimination, and oppression. As a Community Development worker, you may practice various approaches
such as the Human Rights-Based Approach, Anti Oppression Approach, and Anti-Racism Approach in community
development work. One common thing in these approaches is that ‘people are at the heart of community development
and workers collaborate with the community members to bring positive change’.
Enhance Quality of Living
The community development should focus on the well-being and quality of living. The initiative may focus on
economic, physical, and/or social development. A multi-year initiative may focus on all these components. However,
the community initiative is most successful when the community takes one step at a time.
Promote Social Justice
As transformative community workers, our work must be guided by social justice principles, especially equity and
inclusion. Community workers work with the community and critically examine the root causes of poverty,
marginalization, and exclusions. Therefore, community practitioners work with excluded community members and
equip them with knowledge, skills, and resources for their empowerment.
Bottom-Up Approach: Community Participation and Engagement
Community workers continue to put their efforts into ensuring the active participation of community members in the
community change process. Community group members who experience poverty, marginalization, violence, conflicts,
or environmental disasters know their needs and what needs to be done. Community workers should engage
community members in problem diagnosis so that those affected may adequately understand the causes of their
situation (Michigan State University). Therefore, as community workers, we must strive to engage the community from
‘the bottom-up’ in every step of the project/program, from issue identification to project planning, implementation, and
evaluation. The traditional top-down service delivery approach where community members are just recipients of
services and not active participants, is disempowering and further marginalizes community members. Without a
bottom-up approach, community initiatives may cause harm to people.
Community Assets / Capital and Resource Mobilization
Community development initiatives should build upon and focus on community assets / capital. Both terms ‘assets’
and ‘capital’ are used interchangeably, and mean the same thing, which are the strengths of the community. Asset-
based CD (ABCD) is a term used to…Each community relies on different forms of capital to maintain itself and grow
stronger (Parada et al., 2012). Capital includes environmental, physical, economic, human, information, political, and
social resources in the community. A community needs all these forms of capital. Among these, social capital is most
important in community development. We create social capital when we become involved with one another in routine,
often organized ways (Parada et al., 2012). High levels of social capital in a community promote coordination,
communication, participation, cooperation, and engagement; thus, positive change is possible (Parada et al., 2012).
Rather than seeing communities as “needy” and problem-based, communities should be seen in terms of assets,
skills, and capacities (Parada et al., 2012). Exploring, identifying, and mobilizing local capital are the key
responsibilities of community workers for sustainable community development. Roseland (2012) argues that
sustainable development of communities requires mobilizing citizens and their governments to strengthen all forms of
community capital.
Partnership and Collaboration
Community issues and problems are complex. These issues may arise due to individual, cultural and systemic
oppression, colonialism, neoliberal policies, patriarchal system, and climate change. A community may not have all the
necessary resources and capital to address its issues and problem. Therefore, community work highly depends on
partnership and collaboration. A partnership may involve institutions, external philanthropists, and/or community
advocates that can support the host community with technical, financial, and resources.
Sustainability
Community development initiatives must consider results for the present time and future. Sustainable development
meets the needs of the present without compromising the ability of future generations to meet their own needs
(International Institute for Sustainable Development). As Roseland (2012) suggests, sustainable development requires
a fundamental economic and social change to improve human well-being while protecting the environment. Therefore,
community development should produce self-reliant, self-sustaining communities that mobilize resources for the
benefit of all members (Parada et al., 2012). Community work must not compromise any environmental and socio-
economic degradation; instead, it works with the community with a holistic plan and actions for the community
members’ well–being.
Respect Indigenous worldviews and local culture
Indigenous communities see development holistically. According to Cull (2018), Indigenous worldviews see the whole
person (physical, emotional, spiritual, and intellectual) as interconnected to land and in relationship to others (family,
communities, nations). Therefore, these holistic values should be adopted for socio-economic well-being and
sustainable development in the community work practice. On the other hand, each community has a rich culture and
heritage. Our community development work should respect local culture, norms, and practices. However, some
community work may address harmful cultural norms and practices for fair living.
Resilience and empowerment
Finally, the ultimate goal of community work is to make the community resilient and empowered so that community
people should be able to control and use their assets and means to influence. The community development practice
should promote self-determination so that people and communities have the right to make their own choices and
decisions (Scottish Community Development Center[SCDC], para#3). Community development initiatives should
promote active citizen participation so that community members can meaningfully influence decisions that affect their
situation (Michigan State University). In other words, the community development should strengthen people’s voices
and allow them to take collective actions for their socio-economic, cultural, and environmental development and well-
being.
Women were sharing their stories of fighting poverty and discrimination in Bangladesh. Photo: Mahbub Hasan, Year:
2004.
Community Development: Reflections on Principles, Process and Importance in Social Work.
Source: Podcasting Social Work
In this episode, Ma Pia Catherine, a student of Centennial College, shared her knowledge and experience in
Community Development that she has received from Social Service Worker program. Dr. Hasan hosted this episode.
For feedback or joining in a podcast episode, email at mhasan@centennialcollege.ca.
2. PROCESS IN COMMUNITY DEVELOPMENT
Community development is a highly process-oriented work. According to Brown and Hannis, “Effective community
work is a process of engagement at a local level”(2012, p.71). The authors argues that the roles of the community
worker vary significantly, depending on the community, employer/agency, and personal style. The authors identified 10
steps where a Community worker may be involve. I am going describe each step based on Brown and Hannis (2012)
and from my practical experience:
Step 1: Defining the professional’s role
Community worker may act as organizer, educator, coach, facilitator, advocate, negotiator, manager, researcher, and
communicator (Brown & Hannis, 2012)
Step 2: Researching the Community 5. Fairness 10. Make smart decisions
Community worker should learn the community by gathering information from secondary (statistics, Government and
non-government agencies report etc.) and primary sources (interacting with community).
Step 3: Entering the Community
This step Is important because community worker needs understand the community dynamics, their history, culture,
social capitals, power relations, and gradually approach community. Sometimes, community worker need formal CHAPTER 1 - CREDIT EVALUATION
approval to work with a community. For example, I had to take formal permission from Village Head while entering into CREDIT EVALUATION is the process of finding out by proper analysis of what constitutes the acceptable degree on
an Indigenous community. amount of risk the company, bank, or other financing institution is willing to undertake in a particular case
Step 4: Consciousness-raising The following basic questions should be answered:
At the initial phase, community workers engage with local residents and discuss socio-economic issues by asking 1. Is the risk sufficiently good to be accepted at all?
questions. In this step, community worker may utilize adult education for encouraging dialogue and learning. This 2. If the risk is satisfactory, to what extent should credit be granted?
process build sense of belonging among the community members, help them to understand and challenge oppression 3. And, under what condition or terms should credit be granted?
(Brown & Hannis, 2012). For example, at ActionAid, we implemented REFLECT and adult learning and community
mobilization program for consciousness-raising. CREDIT FACTORS
Step 5: Assessment of Needs and Assets  determine the creditworthiness
It is a process where community worker collect information public forums, through survey, interviews, focus group  generally known as the 4 C’s of Credit
discussion. Needs refers to gap between what exist and what should be in a community and assets are resources that
can bridge the gap (Brown & Hannis, 2012). This step help community to develop a plan. A few tasks can be done at 1. CHARACTER
this stage:  comprises those qualities of credit risk which make an applicant want or intend to pay when a debt is due
 Identify community/affected people. This group/people will be the focus of community work  this factor is essentially what is in the mind or in the intention of the credit applicant
 Identify community issues, capacities and needs by engaging local community, agencies/institutions  examines the “track” records
working/affiliated with the community.
 Identify stakeholders for the community project/initiative. Stakeholder means people or agency who are SOCIAL BACKGROUND FAMILY BACKGROUND
directly or indirectly related to the issue which may include local agencies, leaders, funders.
Step 6: Setting Goals APPLICANT’S VICES OR LACK OF IT
A goal is a short statement about “what a group wants to accomplish and should be based on reality” and example
might be “ to form a neighbourhood youth council” (Brown & Hannis, 2012, p.84). A community worker can facilitate EDUCATIONAL HABIT AND OTHER
this process through a brainstorming session with community members and agency staff working locally. ATTAINMENT PERSONAL TRAITS
Step 7: Organization Building Credit Character
Community development work can be initiated by a group community people. It is helpful to establish an organization  refers to previous dealings with the company, bank or other financing institutions
so that community and agency can raise funds. Most funders provide funding to non-profit and registered charities. Credit History
Step 8: Strategizing  records of payments and the volume on amount of credit previously extended
A community worker can support agency to develop agencies strategic plan with vision, mission, objectives that  record of a consumer’s ability to repay debts and demonstrated responsibility in repaying debts
reflects community proprieties. In the credit report, records of payment are usually classified into:
 Objectives are statements of what to accomplish by when and they are concrete and action oriented ” a) Prompt and Satisfactory – pays promptly on due dates
(Brown & Hannis, 2012, p.86). Here is an example SMART objective: For a youth initiative may be “to b) Satisfactory – generally pays promptly but misses a due date or two
increase the employment rate for youth in Regent Park by 10 % over three years” (Brown & Hannis, 2012, c) Slow but Collective – payment is normally delayed and collection letters have to be sent
p.84). d) Poor or Unsatisfactory – when forced collection procedures have to be undertaken to effect collection
 Strategies describe “how the objectives will be accomplished” (Brown & Hannis, 2012, p.84).
 The action steps explain who will do what by when. 2. CAPACITY TO PAY
 Select appropriate resource mobilization strategy.  the ability to pay when a debt is to be due
 Identify local in-kind and cash resources to link with other resources to implement a specific plan with the  generally refers to the Total and Disposable Income
community.
Step 9: Taking Action TOTAL INCOME DISPOSABLE INCOME
Taking action is the critical step in community work. The community imitative may face challenges and resistance from
community. Some work can be done at this stage are: TOTAL INCOME
 Implement the strategy/plan emphasizing on shared leadership and collaboration.  may refer not only to applicant’s income from his employment, or business employment, or business, or real
 Engage the community in the implementation and monitoring of the project/ initiative estate properties, stockholdings or investments, and other such income, but also to his spouse income from
 Gather ongoing feedback on the interventions from the community similar sources
Step 10: Evaluation DISPOSABLE INCOME
 At this stage, following work can be done:  the portion of the income which is not yet committed
 Assess the program impacts on the target audience and others to determine if the stated goals and  all necessary and inevitable expenses are deducted
objectives are met.
 Community members and program participants are consulted using research methods such as interviews, 3. CAPITAL
focus group discussion, case study collection - is the financial strength of a risk as measured by the equity or net worth of the person or business
- refers to the applicant’s assets that can be the fall back on in case the capacity and character fail for some reason or
 Celebrate project success and share lessons learned
another
 If not successful, engage with community to replan and implement revised plan
4. CONDITIONS
10 Traits of Positive Communities
- refer to the economic environment in which the risk exists over which individuals do not have control
1. Common goals 6. Celebrate heritage and traditions
- include also the conditions of the sales contract, itself, like the amount of down payments, the period of installments,
2. Freedom of expression 7. Promote interaction among members
the collaterals offered, the usage of the items subject of the credit stock position of the company, product
3. Address member concerns with sensitivity 8. Elect leaders that stand by community values
obsolescence, and the like
4. Set clear policies and obligations 9. Prioritize effective communication
CHAPTER 2 – FINANCIAL ANALYSIS
- Aside from examining and evaluating the different factors already described, an analysis of the financial
statements submitted by the applicant and duly verified by the credit investigator should also be made.
- In financial analysis, many types of financial ratios may be used.
 3. OTHER COMPANIES OR INDUSTRY AVERAGE
 Ratios are commonly used in financial analysis as standards.
 Standards developed from other companies’ data or from industry data are useful only indicating areas
whether further analysis and study should be made.
4. BUDGETED STANDARD
 is a standard commonly used by management
 The Budget is the statement of what the company intends to do during a stated period of time.
 Budgeted or planned standards determined in advance, taking into account the conditions of the times and
the specific company situation, can be very useful in financial analysis.

These industry standards are available to the members of the organization and may also be made available to certain
outside creditors and others.
a. Short-Term Creditors – Commercial banks and trade creditors and other short-term creditors are primarily
concerned with the ability of a borrower to meet his current obligations promptly.
b. Long-Term Creditors – are likewise keenly interested in the working capital position of the borrower as an
indication of ability to pay interest and principal even if earnings decline.
c. Management – is vitally concerned with efficiency in the use of assets as indicated by the various turnover
ratios.
d. Stockholders – Present and prospective shareholders are primarily interested in per share ratios.

COMPARATIVE STATEMENT ANALYSIS

1. Comparative Statements - are useful in projecting balance sheets and income statements into the future
2. Comparative Balance Sheet Analysis - A comparative study balance sheets at the beginning and end of a
period, or between any two fixed dates, will disclose the changes that have taken place in the assets, liabilities,
and equity between those dates.
3. Comparative Income Statement - A detailed comparison of two income statements of a company will reveal
the changes in the particular income and expense items.

Proper Use of Ratios

STANDARD for COMPARISON
 A ratio, in and of itself, has very little real meaning unless it is compared to some appropriate standard.
 Section of proper standard for comparison is the most important element in ratio analysis.
The four most common types of standards used in ratio analysis are:
1. ABSOLUTE STANDARDS
 are those generally recognized as being desirable regardless of the type of company, the time, stage of the
business cycle, or the objectives of the analyst
2. PAST RECORD
 The company’s own past performance can be used as a standard for the present or future. Past standards
are useful insofar as the past is indicative of the future.
PERCENTAGE ANALYSIS of INCOME STATEMENT The credit decision made may be then classified according to the degree of risk involved in each case as:
A or Above Average or Excellent Risk
PROJECTION of FINANCIAL STATEMENTS B or Fair or Satisfactory Risk
A comparison of financial statements discloses changes that took place in the past. The important thing for C or Below Average or Unsatisfactory Risk
management creditors and investors is to use this information as a basis for projecting financial and operating trends
into the future, as a guide for intelligent action. It is to be noted that instead of having only four (4) credit factors, seven (7) important elements go into the formula.
1. Capacity
2. Credit History
IDEAL SITUATION 3. Terms
The ideal situation in making a credit decision would be to take the following steps: 4. Usage
1. As the prospective customer to fill up a “Credit Application Form.” 5. Model
2. Interview the prospect personally, or through one of the more experienced credit staff. 6. Down Payment
3. Send out a credit investigator for the proper credit investigation. 7. Personal Status
4. If there is still doubt, ask one of the more reliable credit service agencies to do supplementary credit reports.
5. Collate all the credit information thus gathered. DOWN PAYMENT
6. Evaluate the credit risk through the time-tested credit rating or evaluation formula. - represents the equity of interest or participation of the buyer in the unit acquired
7. Make a credit decision.
TERMS
“HURRIED” CREDIT DECISIONS - The longer the re-payment period, the more risky the transaction becomes especially if the unit is exposed to
The following are short-cut steps in making credit decisions: heavy depreciation.
1. At least get to interview the prospect.
2. With the information gathered, discreetly call by phone the references given, especially on credit dealings. USAGE
3. Ask for copies of Statement of Assets and Liabilities, and of real estate evaluation; Check listing PLDT phone - Since the principal collateral in the transaction is the unit itself, it follows that the faster the depreciation of said
and check previous cash or credit purchase with the firm. collaterals, the higher will be the risk.
4. Consider further the records of the salesman proposing the credit sales.
5. Make a credit decision. MODEL
- In the sale of cars and trucks, there is the risk of product obsolescence. The manufacturer or dealer therefore is
NOT ISOLATED OCCURRENCES more eager to dispose the older models than the current ones. Thus, for marketing strategy, credit extensions
 There is always a primary objective of “TO MAXIMIZE PROFITS BY MINIMIZING BAD DEBT LOSSES for older units becomes, more or less, liberal than for current models.
THROUGH PROPER CREDIT EVALUATION OF CREDIT RISK.”
 The ultimate decision in a credit situation must be one of a judgment and not a mere computation through the The following are criteria for Credit-scoring systems:
financial statements. a. STABILITY – the longer the stay in the same job or at the same home address, the more points to score
 The weight to be given for each of the credit factors may be summarized either in mathematical percentage or b. OCCUPATION – In general, professionals score more points than unskilled workers.
through a process known as the “credit equation.” c. INCOME – The size of income is less important than the amount of money uncommitted to existing bills.
Mathematical Percentage d. CREDIT HISTORY – An adverse credit bureau report can cost 15 points in one system. Three positive
Character - 40 35 ones can get 18 points.
Capacity - 35 or 35 e. AGE – In general, the older you are the better you score.
Capital - 25 20
Condition - 0 10 Reference: Credit and Collection Management Judge Jose T. Apolo
100 100
CREDIT EQUATION
The credit equation of a specific risk may be stated as follows:
Character + Capacity + Capital = Good Credit Risk

Should some of the C’s be impaired but not totally absent, the nature of the credit risk involved may be expressed in
these equations:

In case the credit evaluator finds that the risk is below average, or, that there is a necessity to improve the
credit rating, the transaction can still be salvaged by asking either for an acceptable guarantor or by requiring
additional collaterals to improve the risk.