Answer:
The one that has been operating for the past ten years.
Explanation:
This is so because, the bank will consider it of factors which will include:
1. the stage in the life cycle of the company.
2. the credit risk level of the company.
3. the attractiveness of the company to investors.
4. the going concern assumption of the company.
Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.
However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.
The restaurant operating for the last 10 years would be likely to get a loan at a lower interest rate due to the lower risk to the bank in extending the loan.
The banks look into different factors before giving the loan to businesses such as its creditworthiness and the interest of investors in the business along with the continuity period of the business in the market.
Thus, the restaurant that is working from the long run would have better credit ratings with less risk of getting the business closed as compared to new business as the possibility of financial stability and credit rating is low.
Learn more about interest rates here:
https://brainly.com/question/1240459
