Case Study: Mike Schnell and Maverick Oilfield – One Business Owner’s Advice On the Importance of Your Lending Partnerships

Two Brothers, One Truck and a Dream in Lloydminster

Mike Schnell and his brother founded Maverick Oilfield in 1978. Back then, they were just two guys in their early 20s without any money to their name; but they were ambitious, hard-working, and they had a dream. 

Together, they bought an old, beaten-up, one-ton crew truck, restored it themselves and headed to the booming town of Lloydminster to launch their first business.

With limited housing options in town at the time, they depended on the kindness of friends, sleeping on a living room floor throughout that first cold winter. They worked long days and lived on bread and bologna – it was all they could afford. But they knew if they worked hard, they could get somewhere.

Their first loan from a bank was a mere $7,000 – to them, it felt like a million bucks! By the end of that first year, they had repaid the loan, bought two new trucks (one for each of them), and even had a few employees.

On the Heels of Success Comes New Challenges

Things have changed a lot for Maverick Oilfield since those early days. By the height of the oil boom in the early-mid 2000s, they'd grown into a successful business with over 250 employees. 

But by 2015, the oil industry had taken a major downturn, and everywhere, businesses like Maverick Oilfield were struggling. 

As for so many in Alberta during this difficult time, the major credit union Maverick Oilfield was working with simply cut off their line of credit. There was no advice offered, no opportunity to find a solution – it felt like the bank just wanted to take their money and run.

To keep the business going, Mike was forced to leverage his savings and pour every ounce of what he had to keep things afloat. He described this period as some of the darkest days of his life.

On the advice of an employee, Mike was encouraged to meet with the team at Essex Lease Financial. Previously, Mike had only worked with big banks – he didn't even know that alternative lenders like Essex Lease existed. But he decided to give it a shot.

Immediately, he could tell the Essex approach was different. The people he met at Essex took the time to really listen to his story and get to know him on a personal level. “When I first went in to speak with Essex, when it came to the "5 C's of Credit" , I knew 4 out of 5 of my C’s were garbage”, laughed Mike. “The numbers on paper didn’t tell the whole story. But what I did have was character – hard work, commitment and personal integrity.” When the Essex team told Mike they believed in him and were willing to back Maverick Oilfield, it felt like a second chance at his dream. 

Yes, it took time, and things weren't perfect at first. Some months Mike still couldn't make all his payments. But the Essex team continued to back him through the challenges. They believed in his character and the potential of his business. Even through the difficulties of COVID-19, when the price of oil briefly dipped into negative territory, Essex was there when other banks weren't.

Lessons Learned and a Brighter Future Ahead

Today, Maverick Oilfield is back on track, and Mike is proud to admit that they currently have to turn away more business than they can take on. They're growing again (but more carefully and steadily this time) and with the support of a committed and experienced financial partner by their side. Mike’s even been able to share his success with his loyal and long-standing employees by offering them ownership options in the company.

So what is his advice for business owners through all of this? 

The importance of diversifying your lending relationships and working with a lender that is willing to work with you.

"I've completely changed my mind about alternative lenders," Mike says, "never again do I want to be an 'all the eggs in one basket’ type of business. You need to diversify your lending the same way you would diversify your customer base or supplier base."

It may take hundreds of things to make a business work, but nothing matters more than character. That's why your character is always #1 on our list. 

Stories like Mike Schnell's make us incredibly proud to do what we do at Essex. We’ll always believe that lending relationships should be partnerships. 

If you aren't getting that with your bank, it may be time to look elsewhere. We're ready when you are.

For over 35 years, Essex Lease Financial has been helping businesses like Maverick Oilfield succeed through the inevitable economic ups and downs. 

If you're ready to work with financing experts that offer custom solutions built to help your business through the tough times (and not just the good ones), contact Essex Lease today.