Wells Fargo Equipment Finance, Inc.
Roderick Hart
January 14 – 16, 2011
Confidential – For Discussion & General Information Purposes Only
Wells Fargo Equipment Finance, Inc.
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
Wells Fargo Equipment
Finance, Inc. has the expertise,
products and services to develop
a financing solution customized
for your business
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
1
2
Practice Management Solution Conference and Expo
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
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.
2
Market share
Top 10 (bank-affiliated)
Based on Net Assets
($ in billions)
Rank
1
2
3
4
5
6
7
8
9
10
Com pany
Banc of America Leasing
Wells Fargo Equipment Finance
CIT Group
Key Equipment Finance
U.S. Bank Equipment Finance
PNC Equipment Finance
Chase Equipment Leasing
Suntrust
Fifth Third Leasing
RBS Asset Finance
Source: 2009 Monitor 1 00 Surv ey
Source: 2010 Monitor Survey
Practice Management Solution Conference and Expo
3
2009
$34,1 57
27 ,1 25
24,860
1 0,7 23
9,493
9,41 4
7 ,632
6,1 7 0
5,462
4,893
Industries and equipment
We can finance long-lived, essential-use equipment including, but not limited to, the following categories:
Aircraft
Corporate
Turbofan
Turboprop
Regional
Helicopters
VIP
Industry Specific
Construction
Earth Mov ing
Aggregate
Concrete/Asphalt
Energy
Ex ploration & production
Pumps/Compressors
Oilfield Serv ices
Drilling Rigs & Support
Pressure pumping
Mid-stream
Gathering and processing
Food processing
Meat
Dairy
Bottling/Canning
Baking
Frozen Foods
Rendering
Machine tools (NC & CNC)
Lathes
Grinding
Turning
Milling
Forming
Flex ible Manufacturing Cells
Woodworking
Marine
Barges
Tankers
Bulk Carriers
Tow/Push Boats
Transportation Vessels
Supply Vessels
Tugs
Plastics
Injection Molding
Blow Molding
Thermoforming
Ex trusion
Support Equipment
Printing
Prepress
Press
Bindery /Finishing
Process equipm ent
Chemical
Refining
Pharmaceuticals
Specialty Manufacturing
Material handling
Cranes
Distribution Facilities
Lift Trucks
Conv ey or Sy stems
Racking
Scrubber/Sweepers
Rail
General Serv ice Railcars
Intermodal Cars
Tankcars
Locomotiv es
Rail Serv ice Equipment
Rail Track
Medical
Diagnostic Imaging
HIS/PACS
Laboratory
ICU/CCU
Practice Management Solution Conference and Expo
Sem iconductor
Front End
Back End
Surface Mount Technologies
4
T echnology
PCs/Laptops/Workstations
Mid-range serv ers
Mainframe/enterprise serv ers
Data Storage (tape, disk)
Printer/Copiers/Fax
Monitors
Scanners
Point-of-sale (POS)
T ransportation
Power Equipment
Trailers
Buses / Motor coaches
Straight Trucks
Specialty Vehicles
Utilities
Power
Generation
Renewables
Distribution/Transmission
Healthcare Financial Services
Healthcare Financial Services
 Serve clients such as physician groups, hospitals, health systems, oncology
facilities, imaging, and surgery centers
Our healthcare specialists have
the financial expertise and
healthcare industry knowledge
to customize a financing
solution that fits your unique
situation
 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
Transaction characteristics









Practice Management Solution Conference and Expo
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
5
Comprehensive expertise with numerous asset types
Typical Assets
Radiation Therapy
Diagnostic Imaging
Surgery and Dialysis equipment
Lab/Clinical Diagnostics
Software, Information Technology
Electronic Health Record (EHR)
Electronic Medical Record (EMR)
Automated Pharmaceutical
Medication Delivery
PACS
Surgical Systems
Our industry specialists have
deep expertise in financing
numerous types of medical
equipment
Practice Management Solution Conference and Expo
6
Product solutions
We offer a wide variety of financing solutions to meet the unique needs of our clients.
Primary Client Benefits
Loan / Finance Lease Products
Description
 Secured Loan
 Lease Purchase Agreement / $1 Buy Out
 Generally on-balance sheet for Borrower
 Lessee/Borrower retains tax benefits
/ Lessee
 Title remains with customer
 Synthetic Lease hybrid structure is offbalance sheet for Lessee while allowing
Lessee to retain tax ownership
associated with ownership of the
equipment
 Potential for higher advance rates and
customized asset amortizations
compared to traditional bank loans
/ Finance Lease
 Synthetic Lease (Non-Tax Operating
lease)
Description
True Tax Products
 FMV Lease
 TRAC/Split TRAC
 First Amendment Lease
 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
Specialized Products & Roles





Vendor financing programs
Total Money Program (working capital line of credit)
Inventory lines
Syndication capabilities
Pricing and structuring expertise
Nothing contained herein should be considered tax or accounting advice.
Practice Management Solution Conference and Expo
7
Primary Client Benefits
 Lessee receives lower rental payments
through Lessor’s efficient tax ownership
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
Examples of Vendor programs:
Private label
Referral
 Vendor refers customers to Wells
Fargo Equipment Finance, Inc.
 Documentation and /or billing are
offered in the vendor’s name
 We provide a wide range of loan
and lease options, including
structuring the transaction to
simplify your customers’
documentation, funding, billing
and collecting needs
 Vendor may invoice the lease
payments and Wells Fargo
Equipment Finance functions as
the back office, which may include
billing and collecting
 Field sales support when needed
 Wells Fargo’s servicing may be
non-notification to customers
 Field sales support when needed
Practice Management Solution Conference and Expo
8
Variety of structures
 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
Benefits of customized vendor program
Increases equipment
sales
Provides
liquidity
Transfers credit risk
and cost
of servicing
Customized
Vendor
program
Protects installed
customer base (footprint)
One-stop shopping for
customers
Margin
protection
Potential
referral fee income
Practice Management Solution Conference and Expo
9
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
Now may be the time to
purchase new equipment and
take advantage of the 100
percent first year deduction
 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
Many types of equipment
may qualify:
Practice Management Solution Conference and Expo
10








Construction
Trucks
Trailers
Agricultural
Manufacturing
Medical
Office and technology
Printing presses
Contacts
Roderick W. Hart II
Territory Manager
Laurel, MD
roderick.hart@wellsfargo.com
(301) 787-8692
Practice Management Solution Conference and Expo
11
Practice Management Solution Conference and Expo
12