> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usefleet.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Operator Journey

> How African fleet operators access Fleets financing — from eligibility to drawdown to final repayment.

## 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

<Info>
  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.
</Info>

## Loan Parameters

| Parameter         | Specification                               |
| ----------------- | ------------------------------------------- |
| **Facility size** | Typically `$50,000+` per facility           |
| **LTV**           | 60–80% — operator contributes 20–40% equity |
| **APR**           | 15–25%, fixed at drawdown                   |
| **Term**          | 12, 24, or 36 months                        |
| **Repayment**     | Fully amortising — equal monthly payments   |
| **Collateral**    | Vehicle lien held by SPV                    |
| **Currency**      | USD (disbursement and repayment)            |
| **Grace period**  | 30 days after missed repayment              |

## The Operator Journey

<Steps>
  <Step title="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)
  </Step>

  <Step title="SPV Due Diligence">
    The licensed Nigerian SPV conducts credit assessment, including:

    * Fleet cashflow analysis
    * Vehicle lien registration feasibility
    * Operator identity verification
    * Business operations review
  </Step>

  <Step title="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
  </Step>

  <Step title="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.
  </Step>

  <Step title="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.
  </Step>

  <Step title="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
  </Step>

  <Step title="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.
  </Step>
</Steps>

## 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
```

| Month | Payment  | Interest | Principal | Balance   |
| ----- | -------- | -------- | --------- | --------- |
| 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.

## 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.

## 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

The SPV structure means operators transact with a licensed Nigerian entity — not directly with a DeFi protocol. This ensures compliance with local financial regulations.

<Note>
  To start an application, reach out at [contact@usefleet.com](mailto:contact@usefleet.com) or visit [usefleet.xyz](https://usefleet.xyz).
</Note>