Wells Fargo agrees to buy GMAC's North American factoring portfolio

Abstract

Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Co. and its subsidiaries, including Wells Fargo Bank NA.

As expected, Wells Fargo & Co. said March 24 that unit Wells Fargo Bank NA agreed to purchase "substantially all" of the North American factoring portfolio of the commercial services division of GMAC Commercial Finance Group.

Terms of the deal were not disclosed.

The portfolio consists of about 150 small and middle-market clients that primarily serve the retail channel, representing approximately $4 billion in annual volume of factored receivables. Wells Fargo Bank will also acquire the client service application system currently used to manage these relationships.

Upon completion of the deal, the portfolio and client service application system will become part of the trade capital division of Wells Fargo Capital Finance.

Wells Fargo Securities advised Wells Fargo Bank NA on the transaction.

Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Co. and its subsidiaries, including Wells Fargo Bank NA.