Final answer:
The primary difference between a small business loan from a bank in the form of an installment loan and one as revolving credit lies in their repayment structures.
Step-by-step explanation:
The primary difference between a small business loan from a bank in the form of an installment loan and one as revolving credit lies in their repayment structures.
An installment loan is a one-time loan that is repaid over a fixed period of time in equal installments. Once the loan is fully repaid, the borrowing capacity is extinguished.
On the other hand, revolving credit is a flexible line of credit that allows the borrower to access funds up to a certain credit limit. As the borrower repays the amount, they can reuse the credit again and again without needing to reapply for a new loan.