If you are active in the stock market and financial sphere, you have heard the term “hard money” quite a few times. Despite how frequent the term comes up, several stockholders and investors aren’t aware of how hard money actually works or what it even means. Since there is a whole corner of the financial world dedicated to hard money and hard money lenders, let’s take a look at what this term means. This video gives a comprehensive look into the world of hard money.
As you can see, hard money can actually mean a variety of things! Hard money can refer to coins instead of bills, support from the government, or a loan given by a hard money lender in the form of assets. A high-interest loan is also defined as a “hard money loan”, bringing another definition to the term. Finally, hard money can be used to describe gold, silver, and coins. Generally, hard money refers to more reliable and consistent forms of payment, versus estimated and theoretical forms of future revenue, such as the stock market.