What Are Hard Cash Loans?

Hard cash loans are types of loan that are secured with physical assets such as a property, car or any other item that has value, in return for immediate cash. They are most often used when a lender requires short-term bridging capital for real estate transactions. Typically such loans are provided by individuals rather than financial institutions (such as banks, for example).

These types of loans normally have a short term and attract higher interest costs. The terms of such loans can vary widely and are negotiated on a one-off basis by the lender and borrower with property being used as collateral. The advantage of these loans for the borrower is that they do not need to prove their credit worthiness and can gain access to capital quickly. For the lender the advantage is a higher rate of return and the knowledge that the collateral provided by the borrower assures them that they will make money even if they default on repayment.