Trade & Export Finance to Asset-Based Finance?

Transitioning from Structured Trade & Export Finance to Asset-Based Finance (ABF) or asset-backed private credit roles is a realistic move, but there are nuances to consider. Based on the most helpful WSO content, here’s what you need to know:

1. Relevance of Your Current Role:
   Your experience in ECA-backed export deals, structured trade lines, and borrowing base facilities is highly relevant to ABF. These roles share a focus on secured lending, collateral evaluation, and credit structuring, which are core skills in ABF. The secured/asset-backed angle you’re working on aligns well with the fundamentals of ABF and private credit.

2. Recruiter Preferences:
   While recruiters may have a preference for candidates with direct experience in securitization, ABS, or specialty finance, your background in structured trade finance is still valuable. Highlighting your expertise in collateral analysis, covenant structuring, and credit risk assessment can position you as a strong candidate. Additionally, your exposure to borrowing base facilities and receivables/inventory financing bridges the gap between trade finance and ABF.

3. Intermediate Steps:
   If you find it challenging to move directly into ABF or private credit, consider roles in specialty finance, securitization, or even corporate banking with a focus on asset-backed lending. These can serve as stepping stones, allowing you to build more directly relevant experience and expand your network in the ABF space.

4. London Market Dynamics:
   The London market is competitive, and recruiters often look for candidates with niche expertise. Networking will be crucial—leverage your current role to connect with professionals in ABF and private credit. Attending industry events or reaching out to alumni in these fields can help you gain insights and opportunities.

5. Actionable Steps:

   • Tailor Your Story: Emphasize the transferable skills from your current role, such as structuring secured deals, managing collateral, and understanding credit risk.
   • Upskill: If possible, gain exposure to securitization or ABS-related projects within your current team. Alternatively, pursue certifications or courses that demonstrate your interest in ABF.
   • Network Strategically: Target professionals in ABF and private credit roles in London. Use LinkedIn, alumni networks, and industry events to build connections.
   • Recruiter Outreach: Engage with recruiters who specialize in ABF and private credit. They can provide guidance on how to position yourself and what intermediate steps, if any, might be necessary.

With 1-2 years in your current role, a move to ABF is achievable, especially if you proactively position yourself as a candidate with strong secured lending expertise.

Sources: Commodity Trade Finance?, 40% paycut, Leveraged Finance – 2017 Update, Automation in fundamental finance roles, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii