What is Hard Money?

Hard money is a broad term used in connection with currency and transfer payments.

How Does Hard Money Work?

Hard money has two separate meanings. Hard money may refer to continuous cash payments that are part of a grant or subsidy issued by an organization or public agency (for example, a student's living stipend or an employee transportation allowance).

Also, hard money may refer to physical currency minted from or backed by precious metals (for example, gold or silver bullion).

Why Does Hard Money Matter?

For recipients, hard-money payments provide reliable funding and are preferable to one-time payments.

In terms of currency, hard money has both an extrinsic value as a medium of exchange and an intrinsic value as a physical asset.