Been getting a lot of questions lately about whether a small business loan should be installment or revolving. Honestly, it depends on what your business actually needs, so let me break down the difference.

Installment loans are pretty straightforward. You get a lump sum upfront, then you're on the hook for fixed monthly payments over a set period. Say you borrow $25,000 at 9% interest over five years—you're looking at roughly $519 monthly payments. The math is predictable, which some business owners really like. The downside? You're paying interest on the full amount whether you use it all right away or not.

Revolving credit works more like a credit card. You get a credit limit, draw what you need when you need it, and only pay interest on what you actually use. So if you have a $25,000 line of credit but only pull out $10,000, you're only paying interest on that $10,000. That's the flexibility piece a lot of people appreciate.

So is a small business loan installment or revolving? That really comes down to your situation. Installment loans make sense if you know exactly what you need upfront—like buying equipment—and you've got stable, predictable revenue. Banks also tend to offer better rates on installment loans if you've got solid credit and an established business. You can even find SBA loans with 20-25 year terms and up to $5.5 million in financing if you qualify.

Revolving lines of credit are your move if you're dealing with inconsistent cash flow or unexpected expenses. Seasonal businesses love these because they can tap into the line during slow months. Plus, you're not paying for money you're not using.

Here's what I'd say: figure out whether you need a specific amount for a specific project (installment) or whether you need flexibility to handle ups and downs (revolving). Check the interest rates and fees either way—origination fees and admin fees add up. And honestly, shop around. Different lenders will give you different terms, so it's worth comparing.