Hard money describes fiat money that has a stable market value relative to real goods and services and a strong exchange rate relative to foreign currencies. Businesses may choose to hold hard money because its stable value makes it a more conducive store of value, unit of account for profit-and-loss accounting, and medium of exchange. Usage in lendingA hard money loan is a type of loan that is backed by the value of a physical asset, such as a car or home. Hard money loans typically have shorter terms and higher rates than traditional loans, and are more common in the real estate industry.