GE Commercial Finance is starting up a new effort to securitize trade account receivables. While the company has provided trade account receivable financing for many years, it has not offered securitization, said Michael McGonigle, the head of the new group. The business line will open up another financing option for clients as their credit profile changes, he added.
GE Commercial Finance already has securitization platforms for seven different asset classes, including equipment loans and credit cards. The platforms generate $10 billion in securitization volume on an annual basis. McGonigle said he did not yet have an estimate of how high the new line’s securitization volume could become.
Unlike other financing companies that use conduits to securitize trade receivables, GE is using a qualifying special purpose entity. This allows the company to provide multi-year financing, McGonigle said.
McGonigle plans to add one professional to his four-person team by the end of the year or the first quarter of next year. The opening is for a salesperson with five to 10 years of securitization experience. As the business grows, the team may add three more by the end of next year and another two by the end of the following year. The additions would be in sales and portfolio management.