Who Can Borrow?
Fleets targets established corporate fleet operators in Africa — companies with a documented history of operating transportation assets and generating consistent cashflows. Ideal applicants:- Registered Nigerian corporate entities (other markets planned)
- Operate a fleet of commercial vehicles (buses, vans, coaches)
- Have a track record of at least 12 months of operating revenue
- Seeking to acquire new vehicles or refinance existing acquisition costs
- Willing to grant a vehicle lien on financed assets
All facilities are disbursed in USD via the licensed Nigerian SPV. Operators manage their repayments through the SPV, which handles NGN/USD conversion on the operator’s behalf.
Loan Parameters
The Operator Journey
1
Initial Application
Submit an application through the Fleets platform or directly via the SPV. Provide:
- Company registration documents
- 12 months of bank statements
- Fleet asset schedule (current vehicles, usage, revenue)
- Vehicle(s) to be financed (make, model, year, estimated value)
2
SPV Due Diligence
The licensed Nigerian SPV conducts credit assessment, including:
- Fleet cashflow analysis
- Vehicle lien registration feasibility
- Operator identity verification
- Business operations review
3
Offer and Terms
Eligible operators receive a facility offer specifying:
- Principal amount (60–80% of vehicle purchase price)
- Fixed APR for the facility term
- Monthly payment amount (PMT)
- Repayment schedule starting from disbursement date
4
Protocol Origination Check
Before capital is disbursed, the smart contract verifies:
- Proposed facility does not breach the FFC coverage ratio (φ ≥ 80%)
- Liquidity Reserve is above 20% of pool NAV
- Protocol is not paused
5
Disbursement
USDC is transferred from the protocol pool to the SPV. The SPV converts to NGN and purchases the vehicle(s) alongside the operator’s equity contribution. Vehicle liens are registered.The
disbursement_ts timestamp is recorded on-chain — all subsequent payment dates derive from this.6
Monthly Repayments
Each month, the operator repays a fixed amount to the SPV in NGN. The SPV converts to USDC and credits the protocol pool. The full payment enters the pool and is accounted for as:
- Interest portion: flows through the yield waterfall (10% treasury, 5% Insurance Fund, 85% to FYC/FFC)
- Principal portion: reduces the outstanding loan balance
7
Loan Closure
On the final payment, the loan balance reaches zero, the facility status updates to Repaid, and the vehicle lien is released. The operator owns the vehicles outright.
Amortisation — What Operators Pay
Every Fleets loan uses standard equal-payment amortisation. This means your monthly payment is fixed for the entire loan term — no balloon payments, no variable rates. Example:$100,000 vehicle acquisition at 25% APR over 36 months
Your total cost of borrowing over 36 months is approximately
$43,099 in interest on a $100,000 loan.
What Happens if You Miss a Payment
If a payment is not received by the due date, the grace period begins immediately:- Day 2: Penalty interest begins accruing at APR × 1.25
- Days 2–30: SPV contacts operator to arrange remedy. Operator must pay overdue amount plus accrued penalty interest.
- Day 30, 23:59: If not resolved, automatic default is declared. SPV executes vehicle lien — assets are seized and sold at auction.
SPV and Legal Structure
Fleets operates through a licensed Nigerian Special Purpose Vehicle (SPV) that:- Holds all vehicle liens on behalf of the protocol
- Manages NGN/USD conversion for disbursements and repayments
- Executes enforcement actions (vehicle seizure, auction) on default
- Provides regulatory cover for USD lending activities in Nigeria
To start an application, reach out at contact@usefleet.com or visit usefleet.xyz.