When someone needs an emergency top up loan or needs to borrow funds to secure property before they’ve finalised selling their old property, then the party will generally take out a short term loan known as a bridging loan.   There very short term nature does mean they generally attract a higher interest rate and often more stringent terms.  There are other forms of short term finance in the flexi loan sector;  these are on  paper, very convenient ways of raising small funding very quickly but they attract even higher interest rates – some examples seen are 49% representative APR with interest rate of 40%.  These loans are rather worrying in many respects because they are advertised as problem solvers, which of course, they are, in a very tempiorary way.  However, the huge interest rates mean that the principal sum rarely gets paid off.  The interest mounts up monthly and the loan suppliers are often very good at puersuading customers to take out a top up loan and keep it running month after month.  There somes a point in this cycle where the customer can start to panic   Another means of raising short term cash for a business is to borrow from a government backed lending scheme peer to peer.  The backing will be solid and they won’t lend out if the prospects seem bleak.  To give an example, the interest rates can be as low as 8% per annum for some loans.  When finance is being sourt, it pays to take a great deal of care over which business loan one considers, it can be crippling for the business otherwise.