| 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 loan 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 are 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 twelve months ended December 31, 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:
| |
|
December 31, |
|
|
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Unsecured personal loan receivables |
|
$ |
1 |
|
|
$ |
66 |
|
| Secured personal loan receivables |
|
|
77,491 |
|
|
|
43,804 |
|
| Loan receivables |
|
|
77,492 |
|
|
|
43,870 |
|
| Instacash receivables |
|
|
62,783 |
|
|
|
18,888 |
|
| Finance receivables |
|
|
140,275 |
|
|
|
62,758 |
|
| Fees receivable |
|
|
8,366 |
|
|
|
2,913 |
|
| Membership receivables |
|
|
3,099 |
|
|
|
1,885 |
|
| Deferred loan origination costs |
|
|
929 |
|
|
|
615 |
|
| Accrued interest receivable |
|
|
1,072 |
|
|
|
623 |
|
| Receivables, before allowance for loan losses |
|
$ |
153,741 |
|
|
$ |
68,794 |
|
Changes
in the allowance for losses on receivables were as follows:
| |
|
Twelve Months Ended
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
9,127 |
|
|
$ |
6,613 |
|
| Provision for loss on receivables |
|
|
60,749 |
|
|
|
21,294 |
|
| Receivables charged off |
|
|
(75,557 |
) |
|
|
(39,004 |
) |
| Recoveries |
|
|
28,004 |
|
|
|
20,224 |
|
| Ending balance |
|
$ |
22,323 |
|
|
$ |
9,127 |
|
Changes
in allowance for losses on finance receivables were as follows:
| |
|
Twelve Months Ended
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
9,127 |
|
|
$ |
6,613 |
|
| Provision for loss on receivables |
|
|
51,975 |
|
|
|
18,082 |
|
| Finance receivables charged off |
|
|
(65,711 |
) |
|
|
(33,719 |
) |
| Recoveries |
|
|
26,234 |
|
|
|
18,151 |
|
| Ending balance |
|
$ |
21,625 |
|
|
$ |
9,127 |
|
Changes
in allowance for losses on membership receivables were as follows:
| |
|
Twelve Months Ended
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
- |
|
|
$ |
- |
|
| Provision for loss on receivables |
|
|
3,170 |
|
|
|
1,856 |
|
| Membership receivables charged off |
|
|
(3,446 |
) |
|
|
(3,620 |
) |
| Recoveries |
|
|
554 |
|
|
|
1,764 |
|
| Ending balance |
|
$ |
278 |
|
|
$ |
- |
|
Changes
in allowance for losses on fees receivable were as follows:
| |
|
Twelve Months Ended
December 31, |
|
| |
|
2021 |
|
|
2020 |
|
| Beginning balance |
|
$ |
- |
|
|
$ |
- |
|
| Provision for loss on receivables |
|
|
5,604 |
|
|
|
1,356 |
|
| Fees receivable charged off |
|
|
(6,400 |
) |
|
|
(1,665 |
) |
| Recoveries |
|
|
1,216 |
|
|
|
309 |
|
| Ending balance |
|
$ |
420 |
|
|
$ |
- |
|
The
following is an assessment of the credit quality of finance receivables as of December 31, 2021 and 2020 and presents the contractual
delinquency of the finance receivable portfolio:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
122,477 |
|
|
|
87.3 |
% |
|
$ |
54,247 |
|
|
|
86.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
13,397 |
|
|
|
9.6 |
% |
|
|
6,148 |
|
|
|
9.8 |
% |
| 61 to 90 days |
|
|
4,401 |
|
|
|
3.1 |
% |
|
|
2,363 |
|
|
|
3.8 |
% |
| Total delinquency |
|
|
17,798 |
|
|
|
12.7 |
% |
|
|
8,511 |
|
|
|
13.6 |
% |
| Finance receivables before allowance for loan losses |
|
$ |
140,275 |
|
|
|
100.0 |
% |
|
$ |
62,758 |
|
|
|
100.0 |
% |
The
following is an assessment of the credit quality of loans as of December 31, 2021 and 2020 and presents the contractual delinquency of
the finance receivable loans portfolio:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
66,514 |
|
|
|
85.8 |
% |
|
$ |
38,133 |
|
|
|
86.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
6,577 |
|
|
|
8.5 |
% |
|
|
3,374 |
|
|
|
7.7 |
% |
| 61 to 90 days |
|
|
4,401 |
|
|
|
5.7 |
% |
|
|
2,363 |
|
|
|
5.4 |
% |
| Total delinquency |
|
|
10,978 |
|
|
|
14.2 |
% |
|
|
5,737 |
|
|
|
13.1 |
% |
| Loan receivables before allowance for loan losses |
|
$ |
77,492 |
|
|
|
100.0 |
% |
|
$ |
43,870 |
|
|
|
100.0 |
% |
The
following is an assessment of the credit quality of Instacash as of December 31, 2021 and 2020 and presents the contractual delinquency
of the finance receivable Instacash portfolio:
| |
|
December
31,
2021 |
|
|
December
31,
2020 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| Current
|
|
$ |
55,963 |
|
|
|
89.1 |
% |
|
$ |
16,114 |
|
|
|
85.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31
to 60 days |
|
|
6,820 |
|
|
|
10.9 |
% |
|
|
2,774 |
|
|
|
14.7 |
% |
| 61
to 90 days |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
| Total
delinquency |
|
|
6,820 |
|
|
|
10.9 |
% |
|
|
2,774 |
|
|
|
14.7 |
% |
| Instacash
receivables before allowance for loan losses |
|
$ |
62,783 |
|
|
|
100.0 |
% |
|
$ |
18,888 |
|
|
|
100.0 |
% |
The
following is an assessment of the credit quality of membership receivables as of December 31, 2021 and 2020 and presents the contractual
delinquency of the membership receivable portfolio:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
2,227 |
|
|
|
71.8 |
% |
|
$ |
1,586 |
|
|
|
84.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
514 |
|
|
|
16.6 |
% |
|
|
168 |
|
|
|
9.0 |
% |
| 61 to 90 days |
|
|
358 |
|
|
|
11.6 |
% |
|
|
131 |
|
|
|
6.9 |
% |
| Total delinquency |
|
|
872 |
|
|
|
28.2 |
% |
|
|
299 |
|
|
|
15.9 |
% |
| Membership receivables before allowance for loan losses |
|
$ |
3,099 |
|
|
|
100.0 |
% |
|
$ |
1,885 |
|
|
|
100.0 |
% |
The
following is an assessment of the credit quality of fees receivable as of December 31, 2021 and 2020 and presents the contractual delinquency
of the fees receivable portfolio:
| |
|
December 31,
2021 |
|
|
December 31,
2020 |
|
| |
|
Amount |
|
|
Percent |
|
|
Amount |
|
|
Percent |
|
| Current |
|
$ |
6,682 |
|
|
|
79.9 |
% |
|
$ |
2,435 |
|
|
|
83.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Delinquency: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 31 to 60 days |
|
|
1,684 |
|
|
|
20.1 |
% |
|
|
478 |
|
|
|
16.4 |
% |
| 61 to 90 days |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
| Total delinquency |
|
|
1,684 |
|
|
|
20.1 |
% |
|
|
478 |
|
|
|
16.4 |
% |
| Fees receivable before allowance for loan losses |
|
$ |
8,366 |
|
|
|
100.0 |
% |
|
$ |
2,913 |
|
|
|
100.0 |
% |
|