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	$	4,905	$	—	$	(359)	$	4,546
Aviation advance		5,000		(193)		—		4,807
Advances receivable, net	$	9,905	$	(193)	$	(359)	$	9,353

As of December 31, 2019, 100% of MCAs in which we hold a participation interest were originated through three MCA originators.

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		396
Receivables charged off		(911)
Recoveries of receivables previously charged off		138
Allowance for credit losses, December 31, 2019	$	359

During the three and six months ended December 31, 2019, we provided $5,000,000 and $8,000,000 of cash advances to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to four months, 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 four-month advance period, and are reported as part of MCA income within the statement of operations. During the three and six months ended December 31, 2019 we collected $3,000,000 of these advances. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary.