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Initial Credit Memo — Relay Logistics

Executive Summary

Relay Logistics is a route optimization and fleet management SaaS platform serving mid-market logistics companies across North America. Founded in 2021, the company has demonstrated consistent revenue growth of 26% year-over-year, reaching $9.6M ARR as of May 2026.

The company is seeking a $2.5M revenue-based financing facility to accelerate go-to-market expansion and invest in product development for their enterprise tier. Based on our comprehensive credit analysis, Relay Logistics represents a low-risk lending opportunity that meets all criteria of our SaaS Lending Policy v2.1.

Key strengths include strong unit economics (115% NDR, 18% customer concentration), healthy margins (85% gross margin), and a proven management team with prior exits in the logistics technology sector. The company maintains a DSCR of 1.42x with substantial covenant cushion across all metrics.

Metric FY 2025 TTM May 2026 YoY Change
Annual Recurring Revenue $7.6M $9.6M +26%
Gross Margin 84% 85% +1pp
EBITDA $1.02M $1.32M +29%
Net Dollar Retention 112% 115% +3pp
Customer Concentration (Top 3) 22% 18% -4pp
Monthly Revenue (Dec 2025 - May 2026)
$805K
Dec
$800K
Jan
$810K
Feb
$818K
Mar
$822K
Apr
$828K
May

IC Recommendation: Approve the $2.5M revenue-based financing facility with a 36-month term, 6.5% interest rate, and 0.5% monthly royalty on net revenue. Recommend standard covenant package with minimum revenue threshold of $600K/month and DSCR floor of 1.10x.

LUCIA AI
What are the key risks for this borrower?
Key risks identified for Relay Logistics:

1. Customer concentration — while currently at 18% (well within the 30% threshold), the top client represents 12% of revenue.

2. Market dependency — supply chain SaaS is tied to logistics industry cycles.

3. Margin pressure — gross margin has held at 84-85%, but operating expenses are growing faster than revenue in Q1 2026.