Annual report pursuant to Section 13 and 15(d)

Receivables

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Receivables
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
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 %