Mississauga Delivery Service Partner Approved for Working Capital with Fleet Leasing Strategy

1. Executive Summary

A Mississauga client operated a delivery service business under contract with a major online retail platform. She approached us for working capital financing. We reviewed her cash-flow analysis, business strength, contract quality, personal net worth and overall repayment capacity. The strong point in the file was her contract with the major online platform. While preparing the file, we also realized that her business maintained a fleet of more than 30 cargo vans. She had been financing these vans through dealer loans, which added cost. Since she usually kept each vehicle for about a year and then replaced it, we recommended that she explore a fleet leasing line from the same bank because it could better match her business model and reduce financing cost.

2. Borrower Profile

The borrower was a Mississauga business owner operating a delivery service business. The business worked under contract with a major online retail platform. The client needed working capital financing and also maintained a fleet of more than 30 cargo vans. Borrower identity, business name, platform name, contract terms, revenue, personal net worth amount, credit score and bank name are not disclosed.

3. Property Profile

This was a business financing file with no real estate component disclosed. The financing was related to working capital and fleet-financing optimization for a delivery service business. The business maintained more than 30 cargo vans, which had historically been financed through dealer loans. Vehicle values, loan balances, lease limits, loan amount, rate, term, fees and bank name are not disclosed.

4. The Challenge

The client needed working capital, but the business had to be assessed as an operating company, not as a simple personal loan or mortgage file. The lender needed to understand the delivery contract, cash flow, fleet size, operating expenses, vehicle financing structure, personal net worth, and repayment capacity. The business also had a major fleet-financing inefficiency because cargo vans were being financed through dealer loans even though the business regularly replaced vehicles.

5. Why Conventional Solutions Failed

A simple loan request would not have captured the full business picture. The client needed working capital, but the file also involved contract revenue, fleet expenses, vehicle debt, operating costs, and personal net worth. The dealer-loan structure for the cargo vans was adding cost and did not necessarily match the client’s practice of replacing vehicles after about one year. The file needed a broader business-financing review rather than a narrow working-capital application.

6. Our Analysis

Our analysis focused on business strength and financing structure. We reviewed the client’s cash flow, the strength of the contract with the major online retail platform, business expenses, fleet size, vehicle financing, personal net worth and repayment capacity. The contract helped support revenue visibility. The fleet review revealed that a bank fleet leasing line could be more suitable than repeated dealer loans because the business operated a large van fleet and regularly replaced vehicles.

7. Financing Structure

The file was structured around bank working capital financing, supported by business cash flow, contract strength and borrower financial profile. In addition, a fleet leasing line was recommended through the same bank for the cargo van fleet. Public details do not disclose the bank name, working capital amount, lease limit, interest rate, fees, term, security package, personal guarantee details, revenue figures, contract details, vehicle values or existing dealer-loan balances.

8. Why the Solution Worked

The solution worked because the file was presented as a strong operating business rather than only a cash request. The major-platform contract supported continuity, while the cash-flow review showed the business’s ability to operate and repay debt. The fleet leasing recommendation addressed a hidden cost issue in the business model. The underwriting principle is that business financing should consider both debt service and operating efficiency. Sometimes the best recommendation is not just a loan, but a better capital structure for the business.

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