CAPITAL ADVANCE ("CA") RECEIVABLES

9 Months Ended

Sep. 30, 2023

CAPITAL ADVANCE ("CA") RECEIVABLE

CAPITAL ADVANCE ("CA") RECEIVABLE

NOTE 3 – CAPITAL ADVANCE (“CA”) RECEIVABLES

The Company enters into transactions with pre-qualified sellers in which the Company purchases a designated amount of future receivables for an upfront cash purchase price.

During the nine months ended September 30, 2023 and 2022, the Company has purchased and collected the following principal amounts associated with CAs:

	Nine months ended
	September 30,
	2023		2022
Beginning CA receivables, gross	$	42,466	$	56,101
CA extended to customers		206,187		146,439
Change in revenue receivables		487		(129)
CA collected from customers		(191,157)		(163,395)
Charge-offs, net of recoveries		(3,917)		(2,059)
Ending CA receivables, gross	$	54,066	$	36,957
Allowance for CA losses		(4,910)		(3,629)
CA receivables, net	$	49,156	$	33,328

The outstanding gross balance at September 30, 2023 consists of the following current and overdue amounts:

			1‑30 days	30‑60	60‑90	Above 90
Total		Current	overdue	overdue	overdue	overdue
$	54,066	50,683	1,627	895	376	485

The outstanding gross balance at December 31, 2022 consists of the following current and overdue amounts:

			1‑30 days	30‑60	60‑90	Above 90
Total		Current	overdue	overdue	overdue	overdue
$	42,466	39,945	986	380	104	1,051

The following are current and overdue balances from above that are segregated into the timing of expected collections at September 30, 2023:

			Due in less	Due in 30‑60	Due in 60‑90	Due in more
Total		Overdue	than 30 days	days	days	than 90 days
$	54,066	3,383	11,014	12,763	19,182	7,724

The following are current and overdue balances from above that are segregated into the timing of expected collections at December 31, 2022:

			Due in less	Due in 30‑60	Due in 60‑90	Due in more
Total		Overdue	than 30 days	days	days	than 90 days
$	42,466	2,521	7,354	12,553	14,427	5,611

NOTE 3 – CAPITAL ADVANCE (“CA”) RECEIVABLES (continued):

As of September 30, 2023 and December 31, 2022, the Company applied a range of loss rates to the CA portfolio of 1.59% to 1.86% for the allowance for CA losses.

Below is a rollforward for the allowance for CA losses (“ALCAL”):

	Nine months ended
	September 30,
	2023		2022
Beginning balance	$	5,311	$	2,426
Adjustment for adoption of ASC 326		—		2,505
Provisions		3,649		1,584
Recoveries		(133)		(827)
Charge-offs		(3,917)		(2,059)
Ending balance	$	4,910	$	3,629