Alternatives include engaging in a partnership (basically investment). Someone wants to start a business, they gather interest from investors who put in money f

Alternatives include engaging in a partnership (basically investment). Someone wants to start a business, they gather interest from investors who put in money for a share of the business. The founder contributes effort (and perhaps some money), and the investors contribute money. If the business succeeds, great, everyone wins. If it doesn't, the founder(s) are not stuck with debt + interest to pay back. So, basically what you mentioned. And yes, it does involve more work. But that's how life is if you want to be fair. The alternative with lending money with interest is that now the lendee owes you money just for simply borrowing money. We see what this practice gave us when we look at the current financial situation (in its many forms, bonds for example are a form of usury). It is a predatory practice. Simply making money for having money is extremely dangerous and unethical. You have to work to make money, either by putting in effort to do physical labor, or by doing your research in deciding whom to invest your money with, etc. You can't get money "for free" (I realize that nothing is 100% guaranteed, e.g. if the lendee declares bankruptcy, but the contract itself is predatory).