Is a Business Credit Card considered a Small Business Loan?

business credit card considered small business loanOver the past few weeks, I have seen a significant amount of articles, blogs, and content debating the definition of a Small Business Loan.  Much of the debate is focused on the size of the business.  For example, many of the large banks consider any business with revenues less than $20 million a Small Business.  Of course, my opinion is that any business nearing $20 million in annual revenues isn’t even close to a small business.  For me, a small business is a main street business: restaurants, dry cleaners, gas stations, car dealerships, etc.  The overwhelming majority of these businesses have annual revenues less than $3M!

However, one of the debates that has me undecided is the discussion regarding whether a business credit card should be considered a small business loan.  Here are some of the characteristics that could put it into the “loan” category:

However, there are also other reasons why you wouldn’t include it in the “loan” category:

At the end of the day, I’d like to hear what you think.  Why would or wouldn’t you consider a business credit card a small business loan?

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  1. I wouldn’t consider it a loan due to the fact that mostly all credit cards come up a a revolving account. On the other hand loans show up as an installment loan on credit reports not revolving.

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