A Private Money Loan, also known as Private Equity Financing, can be used for any number of financing needs. These types of loans are typically financed with money provided by private investors versus traditional bank financing. These loans are usually secured with assets by the borrower and do not require the same level of credit validation or down payment as traditional bank provided financing. Because of this, the interest rates of hard money will generally be higher than conventional loans. This is due to the increased risk of the loan. However, these types of loans are ideal for borrowers who need financing for a project that cannot be financed by a bank.