Lala World's financial ecosystem is unique because it is a one stop shop for all your needs. Bills payment, Digital currency, Digital Wallet, Lending services and others. It is truly one of a kind.
I was asking the same thing in my mind. Might be one of the core weaknesses of this project they need to focus on. For now, we'll wait for the devs on how they will handle such issue. Someone answered my previous question, so it's safe to say that the dev is active, we just need to wait.
I've read this on whitepaper, this question is similar to a question posted here on this thread. For sure there are requirements in order for them to apply for the lending system and they are quite aware about this cases.
This is only my theory: The lending system might apply a guarantor system whereas before A can borrow to C there comes B. B will be the guarantor, meaning he will make sure that A won't scam C. because B will be liable if A won't pay back what he/she borrowed. B must be a legit business owner that has much credibility. B somehow is a major partner in the business proposal. something like that.