The interest rate a company pays on loans is a function of Copyright by Glo-Bus Software, Inc Copying distributing or 3rd party website posting isexpressly prohibited and constitutes copyright violation O its credit rating and the length of the term of the loan (1-year versus 5-year versus 10-year)-- the longer the payback term, the higher the interest rate. O its credit rating. whether its credit rating is above or below a B rating--all loans made to companies with a Bor lower rating are made at prime plus 3.5%, while loans to companies with a credit rating of B+ or above are made at prime plus 1.5% [prime is defined as the "base" or "lowest" interest rate that creditors charge very low-risk customers who put up 200% or more collateral] O its debt-equity ratio and interest coverage ratio in the prior year. o its current ratio, debt-asset ratio, and operating profit as a percentage of global sales revenues