Quarterly report pursuant to Section 13 or 15(d)

Receivables

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Receivables
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
RECEIVABLES

5. 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 %