The Benefits of a Private Lender Group Like Marquee Funding 
6 minute read
May 13, 2023


As the mortgage market remains unstable in 2023, more and more investors are turning to private lender groups like Marquee Funding Group as a safer and more reliable alternative to conventional loans. 

Hard money loans offer several advantages over traditional bank loans, including faster funding, more flexible terms, and a higher likelihood of approval.

What’s your loan scenario?

Spooked banks and lenders tighten access to cash

There have been a lot of bank failures in the news lately. Silicon Valley Bank failed on March 10, followed almost immediately by Signature Bank two days later. 

Silicon Valley Bank fallout

To prevent panic and contagion at other small and regional banks, federal regulators made an extraordinary move to backstop billions in uninsured money held by customers of Silicon Valley Bank. 

The Biden administration announced that these customers would have full access to their deposits after the bank’s sudden implosion raised fears of a collapse that could have far-reaching consequences. 

This emergency measure aimed to ensure the safety of deposits and maintain stability in the banking sector.

Signature Bank failure

According to a board member, Signature Bank experienced a withdrawal of over $10 billion in deposits from nervous customers after Silicon Valley Bank’s sudden collapse on Friday. 

This sudden withdrawal caused the third-largest bank failure in US history, leading regulators to take over Signature Bank to protect its depositors and the stability of the US financial system. 

Despite having assets of $110.36 billion and deposits of $88.59 billion at the end of 2022, Signature Bank’s executives were shocked by the sudden events. 

The bank claimed to have no inclination of problems until a deposit run late Friday, which was due to the contagion from SVB, said the board member and former US Rep. Barney Frank. 

Are banks suddenly too unstable?

To give you some perspective on these events, the rate of bank failures this month is not atypical, per sé, but the volume of assets involved is definitely noteworthy. 

For example, back in 2010, the number of banks nationwide that failed that year due to the fallout of the economic downturn of 2008 reached a whopping 157. 

That seems incredible—but keep in mind that the total assets of all those 157 banks only equaled about $90 billion. Just two banks failed in March (so far) of this year, but their combined assets totaled almost $320 billion. 

Even the official website for the NASDAQ put out an article to assure its readers that bank failures were very rare (less than 1% over the last decade) and not to panic. Yet NASDAQ still felt the need to advise in the same article on what to do if your bank actually fails.

Why private lending groups are becoming more popular

With so much volatility in the mortgage market today, it’s no wonder that many borrowers are looking for alternatives like private lender groups like Marquee Funding Group to fund their real estate goals. 

The speed of hard money loans

One of the biggest advantages of hard money loans is their speed. 

Unlike conventional loans, which can take weeks or even months to process, hard money loans can be approved and funded in a matter of days. 

This speed is possible because hard money lenders are typically private investors—lenders who are willing to take on bigger risks in exchange for higher returns. 

As a result, they can make quick decisions without the bureaucratic red tape that often slows down traditional banks.

The flexibility of hard money loans

In addition to their speed, hard money loans also offer more flexibility in their terms. 

Borrowers can typically negotiate terms that are more favorable to their specific needs, such as longer loan terms, lower interest rates, or more flexible repayment schedules. 

This flexibility can be particularly useful in a volatile market like 2023, where borrowers may need more time to stabilize their finances or secure additional funding.

Higher approval rates with hard money lenders

Another advantage of hard money loans is their higher approval rates. 

Because hard money lenders are primarily concerned with the collateral value of the financed property, they are often more open to working with borrowers with less-than-perfect credit histories or who may not qualify for traditional bank loans. 

Hard money loans can be of tremendous use for borrowers who may have been turned down by banks currently caught in the rapids of today’s volatility. 

Those who need funding quickly or who need to take advantage of a time-sensitive investment opportunity often turn to hard money lenders. 

Why choose Marquee Funding Group for your lending needs?

Marquee Funding Group, Inc. is a mortgage banking firm specializing in providing full-service origination, investment sale, and servicing privately placed real estate loans like hard money or private equity loans. 

Marquee has a reliable source of funds—available right now for the right borrower—and offers financial access for those who can’t find institutional financing. We fund all types of loans in both the consumer and commercial markets. 

One of the biggest advantages of Marquee Funding has been its capacity to arrange debt on all types of real property—industrial, construction, owner-occupied, and investment loans, to name a few.

Together, we are committed to providing the industry’s highest-quality products and services.

The bottom line

As the mortgage market continues to experience instability in 2023, hard money loans are becoming an increasingly popular alternative to conventional bank loans. 

With their speed, flexibility, and higher approval rates, hard money loans offer a level of security and predictability that is hard to find in today’s volatile market.

If you’ve tried conventional lenders but found that this uncertain market made it too costly or difficult to get your loan, Marquee Funding Group can help.

Even though hard money loans generally have higher interest rates than traditional loans, they can be one of the best shorter-term loans to help you access cash flow right away before transitioning to a more permanent source of financing later.

Submit your loan scenario for quick review.

Photo by Mikhail Nilov


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