5. Advances Receivable, net

Total advances receivable, net consisted of the following:


					Provision
	Advance		Deferred		for Credit		Carrying
	Principal		Fees		Losses		Value
	(Amounts in thousands)
Merchant cash advances	$	5,301	$	—	$	(560)	$	4,741
Aviation advance		3,000		(81)		—		2,919
Advances receivable, net	$	8,301	$	(81)	$	(560)	$	7,660

As of September 30, 2019, 92% of merchant cash advances were originated through two MCA funders.

Changes in the allowance for MCA credit losses are as follows (amounts in thousands):


Allowance for credit losses, July 1, 2019	$	736
Provision for credit losses		216
Receivables charged off		(520)
Recoveries of receivables previously charged off		128
Allowance for credit losses, September 30, 2019	$	560

During the three months ended September 30, 2019, we provided $3,000,000 of cash advances to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to one month, in exchange for paying us an upfront fee and a guaranty of the full repayment obligation from the principal of the third-party business. These prepaid fees are netted against the principal balance, earned over the one-month advance period, and are reported as part of MCA income within the statement of operations. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary.