Completely false!
Russia is proof loans work. A credit check on Russia shows they are good for a loan.
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"Lend Lease claims against the former Soviet Union arising from World War II were settled in a 1972 agreement between the U.S. and U.S.S.R. In the 1972 agreement, the U.S.S.R. pledged to make three initial payments totaling $48 million and to repay the remaining Lend Lease debt once the United States had granted Most Favored Nations (MFN) trade status.
The Soviet Union made the three initial down payments, but because it did not obtain MFN status at that time -- because of conditions set forth in the 1974 Trade Act -- its obligation to make the remaining payments toward its Lend Lease debt was not triggered before the dissolution of the U.S.S.R. However, MFN status was extended to the Russian Federation in 1992, and accordingly, in 1993, Russia signed an agreement with the U.S. in which it acknowledged its liability and agreed to a repayment schedule for the former U.S.S.R.'s Lend Lease debt."
Office of Development Finance, Bureau of Economic and Business Affairs: War-Related Debts of Other Countries to the U.S. Government