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Documentation Index

Fetch the complete documentation index at: https://usefleetsgmailcom.mintlify.app/llms.txt

Use this file to discover all available pages before exploring further.

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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.

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Loan Parameters

ParameterSpecification
Facility sizeTypically $50,000+ per facility
LTV60–80% — operator contributes 20–40% equity
APR15–25%, fixed at drawdown
Term12, 24, or 36 months
RepaymentFully amortising — equal monthly payments
CollateralVehicle lien held by SPV
CurrencyUSD (disbursement and repayment)
Grace period30 days after missed repayment

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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
If all checks pass, the loan account is created on-chain.
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.

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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 
Monthly payment = PMT = $100,000 × (0.25/12) / (1 − (1 + 0.25/12)^−36)
               = $3,974.98 / month
MonthPaymentInterestPrincipalBalance
1$3,975$2,083$1,892$98,108
12$3,975$1,756$2,219$82,847
24$3,975$1,181$2,794$54,924
36$3,975$81$3,894$0
Your total cost of borrowing over 36 months is approximately $43,099 in interest on a $100,000 loan.

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What Happens if You Miss a Payment

If a payment is not received by the due date, the grace period begins immediately:
  1. Day 2: Penalty interest begins accruing at APR × 1.25
  2. Days 2–30: SPV contacts operator to arrange remedy. Operator must pay overdue amount plus accrued penalty interest.
  3. Day 30, 23:59: If not resolved, automatic default is declared. SPV executes vehicle lien — assets are seized and sold at auction.
In cases of mismanagement, the operator is expected to repay the outstanding principal. The protocol enforces a 30-day grace period at the contract level to protect depositor capital. 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
The SPV structure means operators transact with a licensed Nigerian entity — not directly with a DeFi protocol. This ensures compliance with local financial regulations.
To start an application, reach out at contact@usefleet.com or visit usefleet.xyz.