Tight Money

DEFINITION of 'Tight Money'

A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "dear money".

BREAKING DOWN 'Tight Money'

When there are tight money conditions in the business world, capital is scarcer than usual and therefore commands a higher price. Firms tend to have a harder time obtaining loans and financing expansions in tight money conditions and tend to pay higher than normal interest rates if they are successful in obtaining funds.

RELATED TERMS
  1. Dear Money

    A situation in which money or loans are very difficult to obtain ...
  2. Call Loan

    A loan provided to a brokerage firm and used to finance margin ...
  3. Hard Money Loan

    A loan of "last resort" or a short-term bridge loan. Hard money ...
  4. Tenured Capital

    Loans offered by the government to key business sectors.
  5. Character Loan

    A character loan is a type of unsecured loan that is made on ...
  6. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
Related Articles
  1. Personal Finance

    Personal Loans: To Lend Or Not To Lend?

    Attempting to help a loved one with a cash loan can put a strain on your relationship - and your bank account.
  2. Personal Finance

    Lending From A Loan Officer's Perspective

    Learn how a loan officer thinks, so that you can get the best and safest loan.
  3. Investing

    Understanding Term Loans

    A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate.
  4. Managing Wealth

    Unsecured Personal Loans: 8 Sneaky Traps

    If you are seeking a personal loan, be aware of these pitfalls before you proceed.
  5. Markets

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.
  6. Personal Finance

    Personal Loans vs. Car Loans

    How to tell whether a personal loan or a car loan is better for you.
  7. Investing

    Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.
  8. Personal Finance

    How To Apply For a Personal Loan

    Learn about different avenues for applying for a personal loan, and learn valuable tips to help you get your personal loan application approved.
  9. Markets

    Forces Behind Interest Rates

    Get a deeper understanding of the importance of interest rates and what makes them change.
  10. Personal Finance

    Understanding Loans

    A loan is the act of giving money, property or other material goods to another party with the expectation of being repaid.
RELATED FAQS
  1. Should I get a variable rate student loan?

    I'm cosigning a loan for my daughter for college. With a variable rate, what is the max interest rate they can charge? Is ... Read Answer >>
  2. How does investing your student loans for profit actually work?

    Can you use subsidized and unsubsidized loans? How much higher does the interest rate of the investment have to be than the ... Read Answer >>
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ... Read Answer >>
  4. Are secured personal loans better than unsecured loans?

    Read about the differences between secured loans and unsecured loans and how they are used. Learn about forms of collateral ... Read Answer >>
  5. What are the pros and cons of life insurance policy loans?

    Find out the pros and cons of borrowing against your life insurance policy to help you decide if this loan type is the right ... Read Answer >>
  6. How do 401(k) loans work?

    When individuals are in a tight spot financially, they usually turn to 401(k) loans. The interest rate for the 401(k) loans ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center