Discovering the equipment financing industry
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Each month a Marshall Area Chamber of Commerce member hosts what's called Business After Hours networking event.
"The overall purpose of the event is to showcase a business or organization," the Chamber states on its email it sends out advertising each event. "Whether it’s to show people around your building, provide an update on a current project, or just to welcome guests while networking and meeting new people in the community."
That statement is the main reason I try to attend these events. You never know what you are going to learn or discover.
On Tuesday evening, I discovered an industry that is providing dozens, if not hundreds, of employment opportunities in the Marshall area.
I attended the Business After Hours event hosted by Western Equipment Finance, which is located in kind of hidden location in my opinion. I had to put the Progress Drive address on my GPS and was surprised when it took me to a string of offices behind the Marshall Middle School.
Once inside the Western office I had to navigate through a large-size crowd to link up with Hans Zahrbock. He is the vice president and business relationship manager with Western Finance Equipment at the Marshall office.
"We do equipment financing in all 50 states. We started in 1990. Actually, Western State Bank was in 1902. And actually, they were in Webster, North Dakota, and then they moved it in like the 1960s to Devil’s Lake. So the state bank was always in Devil’s Lake (North Dakota), and then they changed the name. And then in 1990, they started the equipment finance company,” he said.
Zahrbock explained that Western offers equipment finance agreements -- equipment finance loans.
"Ag was kind of where we got our start," he said. "Ag, construction. We do a lot of waste."
The Western Equipment Finance website lists the number of industries that use its services: Agriculture, amusement, carnival, construction, fitness, franchise financing, funeral, golf, laundry, lawn and tree care, rental equipment, solid waste and recycling and wastewater. Western presently employs 22 in the Marshall office.
Besides Western, there is actually one other equipment financing company in the same string of office buildings -- GreatAmerica Financial Services Corp. There are also two other such companies with a Marshall location -- Channel Partners Capital and US Bank also has an equipment financing division.
Zahrbock told me he jumped on the opportunity with Western after 25 years with US Bank.
"I was blessed that they (Western) had an opportunity. I stayed with them, and then was able to kind of start this office in 2020, June 20. So I’ve always been a part of this. I’ve been in Marshall since 1994," he said. "Western just feels like family, you know. It’s that small company. It has great core values, I mean, are really near and dear to them."
I asked Zahrbock how well Western is doing in what I called a "bumpy" economy. He told me business has never been better for Western.
"July typically is one of the worst months for us. But this year, we actually were eight, nine million over budget for the first time. I mean, so you would never think it in July. We’ve had a great year. We continue to be above budget, above our numbers from last year. So, yeah, I mean, could there be a bump in the road? Yeah, I mean, right now it’s been going very well, and the need is there," he said.
"I think it’s its kind of the economy. I mean, while the economy is chugging along, people need equipment. Make their dream come true, right? They need equipment for their, you know, Bob’s mowing company needs two new mowers. So we help finance it and get it taken care of. So that way, cash flows and make it work for them."
Zahrbrock also said Western is expanding. It purchased the building that the Marshall office is located and it has room for 42 employees.
"We’re growing. Today we have twenty-two. So we look to fill this thing in the next four to five years. So we’re not slowing down or planning to slow down," he said. "We want people to come here and want to start a career. And so we do have lots of young people that I’m super excited that have joined or will be joining us because I’ve been in it for 30 years, it’s been very rewarding to me. And so that’s what I want them to see -- is that you know, hey, there’s great opportunities at Western government finance. Be a part of this family-oriented group, core value-driven, you know."
And why do companies like Western locate offices in Marshall?
Zahrbrock cited cost of living is much lower than in other places. But he said it's much more.
"It’s (Marshall) a great community. And if you think about why U.S. Bank has done so well here, or Western has started to do well here, is that we’re in that Midwest. It’s hardworking employees. You know, we’re family oriented," he said.
He also said Western want its employees to be involved with the community.
"You will see just in the last five years we have sponsored the game room at the YMCA which is the called the Western Equipment Finance game room (off to the right when you come in), space for kids after school. Many of us are involved in charities and are on the boards of associations. We have won the Spirit of Community Award three out of the last five years from United Way and that is their top award handed out each year for involvement and giving. We also recently got involved with the City of Marshall for sponsorship of the new Aquatic center, THE SPLASH, so you will see our Western Equipment Finance Logo on the canopy above the slides (Western Slides).”
Yep, that sounds a lot like Marshall.