@nugger @BowsacNoodle @SuperSnekFriend EXACTLY. IF ANYONE MUST CHARGE INTEREST, IT SHOULD BE TO OFFSET THE RISK OF DEFAULT AND ANY UNRECOVERABLE ASSETS. SO A 5% CHANCE OF DEFAULT LOSING 40% OF THE ASSET VALUE UPON REPOSSESSION SHOULD BE 2% INTEREST PAID OVER LIFE OF THE LOAN. ON AN ANNUAL BASIS, THE LENDERS ON AVERAGE SHOULD NEVER BE AHEAD OR BEHIND ON THE MONEY THEY'VE LOANED OUT.

IN AN IDEAL WORLD, LENDERS WOULD JUST NEGATE THE RISK BY REDUCING LOAN TERMS, OR NOT LOANING TO ANYONE WHO SAYS THEIR TEETH ITCH DURING THE PRELIMINARY BORROWER MEETING. YOU COULD ADD A NOMINAL PORTION OF INTEREST FOR ADMINISTRATIVE FEES, BUT THOSE SHOULD BE GOING BY THE WAYSIDE WITH THE ASSISTANCE OF TECHNOLOGY.