Bitcoin price can go both up and down, I believe it will be fairly steady for a while now that we have the halving behind us and without capacity increases in the network. But yes, BTC price volatility ultimately hurts lenders. If one believes the BTC price will go to the moon anytime soon, then it's IMHO just a bit too greedy to expect interest in addition to the growth of value.
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If you keep your business bitcoin related then the funds you earn in btc will increase with the value, the problem arises when someone burrows btc turns it into a centralized currency. The $ for example never has unexpected falls or rises. Nothing huge anyways where as bitcoins can. Do business in bitcoins and the money you earn rises with the value of btc.