I'm likely completely misunderstanding this, but generally speaking - the lower the risk for the loan, the lower the interest rate you get. That's why government bonds are so safe but pay such low rates.
If you look at higher interest rate debt, like credit cards and corporate loans you're potentially making much much more.
But if someone doesn't pay back, presumably the company can sue and get a judgement and garnish their wages to make their money back anyways. So what exactly is the inherent risk element to these higher yield loans?