Lenders consider various factors when determining rates for a business line of credit. From the financial institution's perspective, the riskier the loan, the more interest it will charge.nnCredit HistorynnThe first thing lenders try to determine is your creditworthiness. They'll examine your credit score, and several lenders post minimum credit score requirements. Lenders will dig deeper into your credit history to look for other loan defaults, such as a foreclosure, and bankruptcies, to get a clearer idea of how well you've handled borrowing money in the past.nnYour Business & IndustrynnYour personal credit history is important, and so is your business's credit. Lenders will look at other business loans you've taken, if any. Also, the time you've been in business is a factor, as more established companies are far less risky than startups and businesses less than a year old. Finally, your industry makes a difference, as some sectors are considered riskier than others.nnLoan FeaturesnnThe amount you receive for your line of credit also impacts your interest rate. The more you borrow, the greater the risk, so lenders typically charge a higher rate. In addition, longer repayment terms tend to have higher interest rates.nnInterest Rates in the Lending MarketplacennMost lenders base their rates in part on what the average rates are across the industry. In particular, Prime rates play a significant role. Most lenders will use the Prime rate plus their spread when setting an interest rate.