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Hard Loan

What is 'Hard Loan'

A foreign loan that must be paid in the currency of a nation that has stability and a reputation abroad for economic strength (a hard currency).

Explaining 'Hard Loan'

For example, a loan agreement between a Brazilian company and an Argentinean company where the debt is to be paid in U.S. dollars.


Further Reading


Information: Hard and soft
academic.oup.com [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Loan officer incentives and the limits of hard informationLoan officer incentives and the limits of hard information
www.nber.org [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Korea's search for a global role between hard economic interests and soft powerKorea's search for a global role between hard economic interests and soft power
link.springer.com [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Micro-finance evangelism,'destitute women', and the hard selling of a new anti-poverty formulaMicro-finance evangelism,'destitute women', and the hard selling of a new anti-poverty formula
www.tandfonline.com [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Graduate employability,'soft skills' versus 'hard'business knowledge: A European studyGraduate employability,'soft skills' versus 'hard'business knowledge: A European study
www.tandfonline.com [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Soft capitalism and a hard industry: Virtualism, the 'transition industry'and the restructuring of the Ukrainian coal industrySoft capitalism and a hard industry: Virtualism, the 'transition industry'and the restructuring of the Ukrainian coal industry
rgs-ibg.onlinelibrary.wiley.com [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Between a rock and a hard place: Organizational change and performance under conditions of fundamental environmental transformationBetween a rock and a hard place: Organizational change and performance under conditions of fundamental environmental transformation
www.jstor.org [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …

Loan origination under soft-and hard-information lendingLoan origination under soft-and hard-information lending
www.econstor.eu [PDF]
… not the target of the decisions (eg a loan applicant) … The market does converting this soft information into the hard … Diamond, Douglas W., 1991, Monitoring and reputation: The choice between bank loans and directly placed debt, Journal of Political Economy 99, 689-721 …



Q&A About Hard Loan


Is hard money different from soft loans?

Yes, it is different from soft loans.

What does hard money refer to?

Hard money may refer to a loan that is not backed by collateral.

What type of loans are not considered hard loans?

Loans that are not considered hard loans include those that can be paid off in another country's currency or those that can be repaid in local currency.

What do you mean by "hard" and "soft"?

The terms "hard" and "soft" are used in reference to how difficult or easy it would be for someone to get out of debt if they were unable to pay back their loan on time. A soft loan would be easier for someone with bad credit history or no collateral, while a harder loan might require more stringent requirements like good credit history and some type of collateral like real estate property or stocks/bonds. It also depends on what kind of lender you go through; some lenders will give you a better deal than others depending on your situation and the amount of risk they're willing to take on when lending you their funds. For example, an online lender can offer lower interest rates than traditional banks because they have less overhead costs associated with operating brick-and-mortar locations around the country (no physical buildings means fewer expenses). They also don't have many employees working at those locations so there's less overhead cost involved there too (fewer employees means lower payroll expenses). This allows them to pass these savings onto borrowers who need quick access to capital without having any assets or other types of collateral available for use as security against the loan itself (i.e., no home equity line of credit or car title pawns). In addition, online lenders tend to charge higher fees than traditional banks which helps offset their overall

Why does Brazil have to pay Argentina with U.S. dollars?

Because Argentina has an unstable economy, so it would be difficult for Brazil to pay them back if they used their own currency.

What is hard money?

Hard money refers to a loan that is not backed by collateral.

What is a hard loan?

A hard loan is a foreign loan that must be paid in the currency of a nation with stability and reputation abroad for economic strength.

Where do most international transactions take place?

Most international transactions take place between developed countries.

How does this affect the Brazilian company?

The Brazilian company will have to exchange its money into U.S. dollars before paying back Argentina because it is easier than trying to find another way around it (i.e., using other currencies).

Is hard money the same as cash loans?

No, hard money is not the same as cash loans.

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