Two restaurants are on the same block. One has been open $10$ years and is a thriving business. The other one has been open for only a year. They both want to expand. When the two owners go to the local bank looking for a loan, which one is likely to get a lower interest rate?

The restaurant that has been open for

multiple choice

$10$ years is more likely to get the loan because they have a lower risk of default.

one year is more likely to get the loan because they have a lower risk of default.

$10$ years is more likely to get the loan because they have an established credit history.

one year is more likely to get the loan because they have new ideas.