The interest rates for a revolving business line of credit are usually under 8% annual interest, so using this cash can be a great way to save interest on more expensive business debts. If your business is shouldering expensive credit card and/or merchant cash advance debt, a line of credit is a great way to save money on interest payments.

For example, if your business has credit card debt with interest rates anywhere north of 10%, paying this off using funds from the line of credit means that now the debt payments will be absorbed by the line of credit. On average, American small businesses see an average annualized interest rate of 17% for their credit cards, with an average balance of about $40,000.