• Currently unutilised (i.e. people have skills but the local community cannot afford to employ them due to lack of currency and inability to secure traditional loans)

• Currently underutilised (i.e. people have excess time or produce)

• Not currently available - but which would be available once the borrower has sufficiently developed their skills or products as a result of the investment

Participants are given credit based on their ability to offer their own skills, products or future products against the credit issued within a required time-frame (the shorter the timeframe the higher the circulation of currency within the local community, and the more net-wealth able to be generated within that community).

As with any model used it is subject to local governance and adherence to quality standards to ensure safeguards are in place, high circulation of community credits, balance within the community, supportive administrative infrastructure and good credit management processes.

We can work with multiple models of governance than can be applied to suit a wide range of local community environments and these include respect for diverse social and cultural norms that exist within these communities. Here are some model examples that provide for social and socioeconomic benefit and a way to indicate how different models can be implemented in different circumstances to address related key issues.

Comparison against micro-finance

Example:

Micro business loan of $ 500 for repayment over 1 year

	Monthly	Total Repayment
Micro Finance Leading Loan $ 500 at 12% per year	Repayment $44.42	Over 1 year $ 533.09
Community Credit Micro Finance Loan $ 500 at 0% per year	Repayment $41.65	Over 1 year $ 500.00

"book value" saving of $ 33.09*

Actual Cash saving $ 533.09 Less cost of products sold ( cash cost to buy any materials - not available within the local community- to make the product)

Additional benefits:

1. The funds would be in the local community organizers trust fund account to be utilized as interest free micro finance with local banks as funding for micro enterprise development.

2. The cost to repay the loan is not in cash. As the loan is repaid through new customers being brought to the school which the school would otherwise not have had. The new customers are also participants of the CCE and would otherwise not have been able to afford the cash to attend the school, thus being new cash customers.

When development funds are provided by NGOs this model provides a tangible high Social Return on Investment Report to Fund providers with school being completed as well as ongoing transactions reports showing turnover increase for funds circulating within the community and thus be eligible for more funding.