| RECEIVABLES |
4.
RECEIVABLES
The Company’s finance receivables consist
of secured personal loans, unsecured personal loans, and principal amounts of Instacash advances. Accrued interest receivables represent
the interest accrued on the finance receivables based upon the daily principal amount outstanding. Fees receivables represent the amounts
due to the Company for tips and instant transfer fees related to the Instacash advance product. Membership receivables represent the amounts
billed to customers for membership subscription services. The credit quality and future repayment of finance receivables is dependent
upon the customer’s ability to perform under the terms of the agreement. Factors such as unemployment rates and housing values,
among others, may impact the customer’s ability to perform under the loan or advance terms. When assessing provision for losses
on finance receivables, the Company takes into account the composition of the outstanding finance receivables, charge-off rates to date
and the forecasted principal loss rates. Please see the tables below for the finance receivable activity, charge-off rates and aging by
product for the nine months ended September 30, 2021 and 2020. The Company has experienced significant growth in Instacash, a shorter-term
advance product with lower charge-off rates than loans. As Instacash has become a larger component of finance receivable activity, the
overall charge-off rate has decreased significantly.
Receivables consisted of the following:
| |
|
September 30, |
|
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Finance receivables |
|
$ |
116,028 |
|
|
$ |
62,758 |
|
| Fees receivable |
|
|
7,338 |
|
|
|
2,913 |
|
| Membership receivables |
|
|
3,283 |
|
|
|
1,885 |
|
| Deferred loan origination costs |
|
|
1,528 |
|
|
|
615 |
|
| Accrued interest receivable |
|
|
1,104 |
|
|
|
623 |
|
| Receivables, before allowance for loan losses |
|
$ |
129,281 |
|
|
$ |
68,794 |
|
Finance receivables consisted of the following:
| |
|
September 30,
2021 |
|
|
December 31,
2020 |
|
| Loan receivables |
|
$ |
69,571 |
|
|
$ |
43,870 |
|
| Instacash receivables |
|
|
46,457 |
|
|
|
18,888 |
|
| Finance receivables, before allowance for loan losses |
|
$ |
116,028 |
|
|
$ |
62,758 |
|
Loans receivables consisted of the following:
| |
|
September 30,
2021 |
|
|
December 31,
2020 |
|
| Unsecured personal loan receivables |
|
$ |
- |
|
|
$ |
66 |
|
| Secured personal loan receivables |
|
|
69,571 |
|
|
|
43,804 |
|
| Loan receivables |
|
$ |
69,571 |
|
|
$ |
43,870 |
|
Changes in the allowance for loan losses on receivables
were as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
14,701 |
|
|
$ |
5,259 |
|
|
$ |
9,127 |
|
|
$ |
6,613 |
|
| Provision for loss on receivables |
|
|
15,238 |
|
|
|
10,456 |
|
|
|
36,644 |
|
|
|
14,587 |
|
| Receivables charged off |
|
|
(20,979 |
) |
|
|
(13,308 |
) |
|
|
(51,819 |
) |
|
|
(30,517 |
) |
| Recoveries |
|
|
7,831 |
|
|
|
6,263 |
|
|
|
22,839 |
|
|
|
17,987 |
|
| Ending balance |
|
$ |
16,791 |
|
|
$ |
8,670 |
|
|
$ |
16,791 |
|
|
$ |
8,670 |
|
Changes in allowance for losses on finance receivables were as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
14,223 |
|
|
$ |
5,259 |
|
|
$ |
9,127 |
|
|
$ |
6,613 |
|
| Provision for loss on receivables |
|
|
12,542 |
|
|
|
6,622 |
|
|
|
30,877 |
|
|
|
9,242 |
|
| Finance receivables charged off |
|
|
(17,851 |
) |
|
|
(8,346 |
) |
|
|
(44,996 |
) |
|
|
(22,836 |
) |
| Recoveries |
|
|
7,261 |
|
|
|
5,135 |
|
|
|
21,167 |
|
|
|
15,651 |
|
| Ending balance |
|
$ |
16,175 |
|
|
$ |
8,670 |
|
|
$ |
16,175 |
|
|
$ |
8,670 |
|
Changes in allowance for losses on membership
receivables were as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
197 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Provision for loss on receivables |
|
|
1,025 |
|
|
|
3,355 |
|
|
|
2,204 |
|
|
|
4,713 |
|
| Membership receivables charged off |
|
|
(1,089 |
) |
|
|
(4,320 |
) |
|
|
(2,576 |
) |
|
|
(6,791 |
) |
| Recoveries |
|
|
137 |
|
|
|
965 |
|
|
|
642 |
|
|
|
2,078 |
|
| Ending balance |
|
$ |
270 |
|
|
$ |
- |
|
|
$ |
270 |
|
|
$ |
- |
|
Changes in allowance for losses on fees receivable
were as follows:
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
281 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
| Provision for loss on receivables |
|
|
1,671 |
|
|
|
479 |
|
|
|
3,563 |
|
|
|
632 |
|
| Fees receivable charged off |
|
|
(2,039 |
) |
|
|
(642 |
) |
|
|
(4,247 |
) |
|
|
(890 |
) |
| Recoveries |
|
|
433 |
|
|
|
163 |
|
|
|
1,030 |
|
|
|
258 |
|
| Ending balance |
|
$ |
346 |
|
|
$ |
- |
|
|
$ |
346 |
|
|
$ |
- |
|
As of September 30, 2021, the following is an
assessment of the credit quality of finance receivables and presents the contractual delinquency of the finance receivable portfolio:
| |
|
September 30, 2021 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
102,091 |
|
|
|
88.0 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
9,522 |
|
|
|
8.2 |
% |
| 61 to 90 days |
|
|
4,415 |
|
|
|
3.8 |
% |
| Total delinquency |
|
|
13,937 |
|
|
|
12.0 |
% |
| Finance receivables before allowance for loan losses |
|
$ |
116,028 |
|
|
|
100.0 |
% |
As of December 31, 2020, the following is an assessment of the
credit quality of finance receivables and presents the contractual delinquency of the finance receivable portfolio:
| |
|
December 31, 2020 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
54,247 |
|
|
|
86.4 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
6,148 |
|
|
|
9.8 |
% |
| 61 to 90 days |
|
|
2,363 |
|
|
|
3.8 |
% |
| Total delinquency |
|
|
8,511 |
|
|
|
13.6 |
% |
| Finance receivables before allowance for loan losses |
|
$ |
62,758 |
|
|
|
100.0 |
% |
As of September 30, 2021, the following is an
assessment of the credit quality of loans and presents the contractual delinquency of the finance receivable loans portfolio:
| |
|
September 30, 2021 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
59,573 |
|
|
|
85.6 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
5,583 |
|
|
|
8.0 |
% |
| 61 to 90 days |
|
|
4,415 |
|
|
|
6.4 |
% |
| Total delinquency |
|
|
9,998 |
|
|
|
14.4 |
% |
| Loan receivables before allowance for loan losses |
|
$ |
69,571 |
|
|
|
100.0 |
% |
As of December 31, 2020, the following is an
assessment of the credit quality of loans and presents the contractual delinquency of the finance receivable loan portfolio:
| |
|
December 31, 2020 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
38,133 |
|
|
|
86.9 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
3,374 |
|
|
|
7.7 |
% |
| 61 to 90 days |
|
|
2,363 |
|
|
|
5.4 |
% |
| Total delinquency |
|
|
5,737 |
|
|
|
13.1 |
% |
| Loan receivables before allowance for loan losses |
|
$ |
43,870 |
|
|
|
100.0 |
% |
As of September 30, 2021, the following is an
assessment of the credit quality of Instacash and presents the contractual delinquency of the finance receivable Instacash portfolio:
| |
|
September 30, 2021 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
42,518 |
|
|
|
91.5 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
3,939 |
|
|
|
8.5 |
% |
| 61 to 90 days |
|
|
- |
|
|
|
0.0 |
% |
| Total delinquency |
|
|
3,939 |
|
|
|
8.5 |
% |
| Instacash receivables before allowance for loan losses |
|
$ |
46,457 |
|
|
|
100.0 |
% |
As of December 31, 2020, the following is an assessment of the credit
quality of Instacash and presents the contractual delinquency of the finance receivable Instacash portfolio:
| |
|
December 31, 2020 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
16,114 |
|
|
|
85.3 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
2,774 |
|
|
|
14.7 |
% |
| 61 to 90 days |
|
|
- |
|
|
|
0.0 |
% |
| Total delinquency |
|
|
2,774 |
|
|
|
14.7 |
% |
| Instacash receivables before allowance for loan losses |
|
$ |
18,888 |
|
|
|
100.0 |
% |
As of September 30, 2021, the following is an
assessment of the credit quality of membership receivables and presents the contractual delinquency of the membership receivable portfolio:
| |
|
September 30, 2021 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
2,398 |
|
|
|
73.0 |
% |
| |
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
461 |
|
|
|
14.0 |
% |
| 61 to 90 days |
|
|
424 |
|
|
|
13.0 |
% |
| Total delinquency |
|
|
885 |
|
|
|
27.0 |
% |
| Membership receivables before allowance for loan losses |
|
$ |
3,283 |
|
|
|
100.0 |
% |
As of December 31, 2020, the following table shows the aging of the
membership receivable balance:
| |
|
December 31, 2020 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
1586 |
|
|
|
84.1 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
168 |
|
|
|
9.0 |
% |
| 61 to 90 days |
|
|
131 |
|
|
|
6.9 |
% |
| Total delinquency |
|
|
299 |
|
|
|
15.9 |
% |
| Membership receivables before allowance for loan losses |
|
$ |
1,885 |
|
|
|
100.0 |
% |
As of September 30, 2021, the following is an
assessment of the credit quality of fees receivable and presents the contractual delinquency of the fees receivable portfolio:
| |
|
|
|
|
|
|
| |
|
September 30, 2021 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
7,025 |
|
|
|
95.7 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
285 |
|
|
|
3.9 |
% |
| 61 to 90 days |
|
|
28 |
|
|
|
0.4 |
% |
| Total delinquency |
|
|
313 |
|
|
|
4.3 |
% |
| Fees receivable before allowance for loan losses |
|
$ |
7,338 |
|
|
|
100.0 |
% |
As of December 31, 2020, the following is an assessment
of the credit quality of fees receivable and presents the contractual delinquency of the fees receivable portfolio:
| |
|
December 31, 2020 |
|
| |
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
2,435 |
|
|
|
83.6 |
% |
| Delinquency: |
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
478 |
|
|
|
16.4 |
% |
| 61 to 90 days |
|
|
- |
|
|
|
0.0 |
% |
| Total delinquency |
|
|
478 |
|
|
|
16.4 |
% |
| Fees receivables before allowance for loan losses |
|
$ |
2,913 |
|
|
|
100.0 |
% |
|