Advanced English Dialogue for Business – Hard money

Listen to a Business English Dialogue About Hard money

Paisley: Hi Hannah, have you heard about “hard money” in finance?

Hannah: Yes, Paisley. “Hard money” refers to funds that are backed by a tangible asset, such as gold or real estate.

Paisley: That’s correct. Hard money lending typically involves loans with higher interest rates and shorter terms compared to traditional bank loans.

Hannah: Exactly. It’s often used by real estate investors who need quick financing for property purchases or renovations.

Paisley: Right, because hard money lenders focus more on the value of the collateral rather than the borrower’s credit history.

Hannah: Yes, and borrowers may turn to hard money loans when they’re unable to secure financing from banks due to credit issues or the need for a fast approval process.

Paisley: Absolutely. Hard money can be a valuable resource for investors looking to capitalize on real estate opportunities quickly.

Hannah: Indeed. However, borrowers should be aware of the higher costs and risks associated with hard money loans compared to traditional financing options.