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%