U.S. auto finance company GMAC Financial Services may sell its factoring business unit to Wells Fargo & Co , Bloomberg said, citing two people with direct knowledge of the matter.

The sale may be announced on Wednesday, one of the people told the agency.

GMAC spokeswoman Gina Proia told Reuters that she has no comment on the report.

The factoring business will be integrated into Wells Fargo Trade Capital, according to the agency.

Factoring companies typically provide cash worth less than the full value of the receivables, earning their cut when the money finally comes in from the customer.

GMAC, majority-owned by the U.S. government, is looking to sell units to focus on auto financing after multiple government bailouts.

On March 12, a source told Reuters that GMAC has hired Goldman Sachs to advise it on a possible sale of Residential Capital, its troubled mortgage unit.

Wells Fargo could not be immediately reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

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