Which of the following loans is typically associated with short-term financing during financial distress?

A hard money loan is typically associated with short-term financing during periods of financial distress. These loans are secured by real estate and are often used by borrowers who may not qualify for traditional bank financing due to poor credit history or urgent financial needs.

Hard money lenders prioritize the value of the property over the borrower's creditworthiness, making these loans more accessible for quick funding. They usually come with higher interest rates and shorter repayment terms, reflecting the increased risk for the lender. This type of financing is often sought when rapid access to capital is necessary, which is common during financial distress scenarios, such as foreclosure or urgent renovations to enhance property value.

In contrast, mezzanine loans typically serve as a form of bridge financing that layers on top of senior debt and is often linked to larger, more stable projects. Private loans are generally broader in nature and might not exclusively address urgent, short-term financial stress. Home equity loans are tied to the owner's equity in their home and are generally seen as a longer-term financing option, making them less suitable for immediate, short-term needs.