The bank would be paid interest on the loan. By VC I was just trying to put it in analogous terms. Basically, rather than judging whether the loan will be paid

The bank would be paid interest on the loan. By VC I was just trying to put it in analogous terms. Basically, rather than judging whether the loan will be paid off based on the company’s past income/assets/etc the lender tries to determine whether it would be paid off by judging the company’s future chances of success.