Wells Fargo Equipment Finance, Inc.
Roderick HartJanuary 14 – 16, 2011
Confidential – For Discussion & General Information Purposes Only
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Wells Fargo Equipment Finance, Inc.
Wells Fargo Equipment Finance, Inc. has the
expertise, products and services to develop a
financing solution customized for your
business
1 Based on data from the 2010 Monitor 100 survey, a leading publication in the equipment finance industry, and is based on the combined portfolios of Wells Fargo Equipment Finance and Wachovia Equipment Finance
2 Equipment financing services are provided in Canada by Wells Fargo Equipment Finance Company. Wells Fargo Equipment Finance Company is associated with Wells Fargo & Company, a company that is not regulated as a financial institution, a bank or holding company or an insurance company in Canada.
Leading provider of equipment finance solutions
2nd largest bank-affiliated equipment finance provider in the United States¹
Over 44,000 active customers and 750+ team members
Coverage in all 50 states and Canada2
Industry financing specialists devoted to Healthcare, Construction, Energy, Commercial and Specialty Vehicles, Marine, Rail and Aircraft
Full spectrum of financing options
Creative, customized loan and lease solutions from small to larger, highly structured transactions
Seasoned Capital Markets team with the capability to syndicate transactions in the marketplace, providing additional access to capital
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Market share
Top 10 (bank-affiliated)Based on Net Assets
($ in billions)
Rank Company 20091 Banc of America Leasing $34,1572 Wells Fargo Equipment Finance 27,1253 CIT Group 24,8604 Key Equipment Finance 10,7235 U.S. Bank Equipment Finance 9,4936 PNC Equipment Finance 9,4147 Chase Equipment Leasing 7,6328 Suntrust 6,1709 Fifth Third Leasing 5,46210 RBS Asset Finance 4,893
Source: 2009 Monitor 100 Survey
Source: 2010 Monitor Survey
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We can finance long-lived, essential-use equipment including, but not limited to, the following categories:
Industries and equipment
Aircraft Machine tools (NC & CNC) Plastics TechnologyCorporate Lathes Injection Molding PCs/ Laptops/ Workstations Turbofan Grinding Blow Molding Mid-range servers Turboprop Turning Thermoforming Mainframe/ enterprise serversRegional Milling Extrusion Data Storage (tape, disk)Helicopters Forming Support Equipment Printer/ Copiers/ Fax VIP Flexible Manufacturing Cells Monitors Industry Specific Woodworking Printing Scanners
Prepress Point-of-sale (POS)Construction Marine Press
Earth Moving Barges Bindery/ Finishing TransportationAggregate Tankers Power EquipmentConcrete/ Asphalt Bulk Carriers Process equipment Trailers
Tow/ Push Boats Chemical Buses / Motor coachesEnergy Transportation Vessels Refining Straight Trucks
Exploration & production Supply Vessels Pharmaceuticals Specialty Vehicles Pumps/ Compressors Tugs Specialty ManufacturingOilfield Services Utilities Drilling Rigs & Support Material handling Rail Power Pressure pumping Cranes General Service Railcars GenerationMid-stream Distribution Facilities Intermodal Cars Renewables Gathering and processing Lift Trucks Tankcars Distribution/ Transmission
Conveyor Systems LocomotivesFood processing Racking Rail Service Equipment
Meat Scrubber/ SweepersDairy Rail TrackBottling/ Canning MedicalBaking Diagnostic Imaging SemiconductorFrozen Foods HIS/ PACS Front EndRendering Laboratory Back End
ICU/ CCU Surface Mount Technologies
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Healthcare Financial Services
Our healthcare specialists have the financial expertise
and healthcare industry knowledge to customize a financing solution that fits
your unique situation
Serve clients such as physician groups, hospitals, health systems, oncology facilities, imaging, and surgery centers
Dedicated and experienced staff with healthcare equipment finance expertise
Sophisticated products, competitive structures and pricing Provide financing for new technology including Electronic Health
Records (EHR), single asset acquisitions, tenant improvements and complex expansions
Seasoned Capital Markets team with the capability to syndicate transactions, providing additional access to capital
Offer a complete range of loan and lease financing solutions On or off-balance sheet options Transaction sizes range from $500,000 to $25 million+ Terms range from 18 to 84 months, depending upon
equipment type Finance up to 100% of equipment cost and leasehold
improvements Fixed and floating rates available Can include rate locks and step-up monthly payment structures Pro-rata guaranty or corporate guaranties Customized vendor programs
Transaction characteristics
Healthcare Financial Services
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Comprehensive expertise with numerous asset types
Our industry specialists have deep expertise in
financing numerous types of medical equipment
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We offer a wide variety of financing solutions to meet the unique needs of our clients.
Specialized Products & Roles
Vendor financing programs Total Money Program (working capital line of
credit) Inventory lines Syndication capabilities Pricing and structuring expertise
Primary Client Benefits
Lessee receives lower rental payments through Lessor’s efficient tax ownership
True Tax Products
FMV Lease TRAC/Split TRAC First Amendment Lease
Description
Typically off-balance sheet financings for Lessee
WFEFI has ownership from a tax standpoint
Tax lease products may offer fair market value, early buy-out or end-of-term purchase options for client flexibility
Nothing contained herein should be considered tax or accounting advice.
Primary Client Benefits
Lessee/Borrower retains tax benefits associated with ownership of the equipment
Potential for higher advance rates and customized asset amortizations compared to traditional bank loans
Loan / Finance Lease Products
Secured Loan Lease Purchase Agreement / $1
Buy Out / Finance Lease Synthetic Lease (Non-Tax
Operating lease)
Description
Generally on-balance sheet for Borrower / Lessee
Title remains with customer Synthetic Lease hybrid structure is
off-balance sheet for Lessee while allowing Lessee to retain tax ownership
Product solutions
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Vendor programs
Develop a full range of customized finance programs to help
manufacturers and distributors enhance sales opportunities
We provide service appropriate solutions to a broad range of
vendor needs from referral-only programs with annual program
fundings of less than $10MM to well established captives with
annual funding needs in excess of $200MM
Offer vendor programs that allow you to choose the level of your
company’s involvement in your customers’ transactions
Vendor refers customers to Wells Fargo Equipment Finance, Inc.
We provide a wide range of loan and lease options, including structuring the transaction to simplify your customers’ documentation, funding, billing and collecting needs
Field sales support when needed
Referral Private label
Wells Fargo Equipment Finance can either discount payment streams or purchase entire leases including equipment
We also purchase portfolios of leases and secured loans
Structures to meet vendor’s sales treatment and balance sheet considerations
Variety of structures
Documentation and /or billing are offered in the vendor’s name
Vendor may invoice the lease payments and Wells Fargo Equipment Finance functions as the back office, which may include billing and collecting
Wells Fargo’s servicing may be non-notification to customers
Field sales support when needed
Examples of Vendor programs:
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Benefits of customized vendor program
Increases equipment sales
Provides liquidity
Transfers credit risk and cost
of servicing
Protects installed customer base (footprint)
One-stop shopping for customers
Margin protection
Customized Vendor
program
Potential referral fee income
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Bonus depreciation
President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act)
The 2010 Tax Relief Act allows companies to depreciate in the first year, 100 percent of the cost of qualified equipment bought and placed in service in the calendar year 2011. For qualified equipment placed in service in calendar year 2012, the available “bonus depreciation” will be 50 percent
There may be exceptions to the "placed in service" requirement for certain aircraft or other equipment with long production periods
Applies to purchases of tangible personal property with a MACRS recovery period of 20 years or less
New equipment only
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Construction Trucks Trailers Agricultural Manufacturing Medical Office and technology Printing presses
Many types of equipment may qualify:
Now may be the time to purchase new equipment
and take advantage of the 100 percent first year
deduction
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Roderick W. Hart II Territory Manager
Laurel, [email protected]
(301) 787-8692
Contacts