Credit is an essential in business. It enables businessmen to purchase inventory even when the coffers are empty, with the understanding that once the goods are sold, the creditor will receive his payment. Most businesses could not survive without this system, and even though there are occasional defaults, the practice of extending credit persists. People are willing to take the risks because they are far outweighed by the benefits.

This reasoning, the Chofetz Chaim says, should extend to chesed (acts of kindness) as well. There are indeed loans that are not repaid. There are losses. The benefits, however, far outweigh the risks. ~ Sefer Ahavas Chesed