Riba In Secured Loans For Consumables
Determining the fault in a business loss is not practical and mostly can be attributed to external forces. If you are talking about LLC then there are only partners that contribute in business. If a loan is secured by a bank, the bank makes sure that the business is solid, they secure a loan and after this to avoid losses in bankruptcy, they charge enough interest to avoid losses at a portfolio level. A business normally fail because of their inability to make the scheduled loan payment. If a business is wholy based on equity, there is a much less chance of failure in a downturn. It is possible to run a business to completely based on equity investment, but in order to maximize profits, instead businessman take loans. So instead of wealth distributing between many people, it either stays with a wealthy businessman or goes to a bank.