Finance receivables are comprised of sales-type lease receivables and unsecured revolving loan receivables. Sales-type lease receivables are generally due in monthly, quarterly or semi-annual installments over periods ranging from three to five years. Loan receivables arise primarily from financing services offered to our clients for postage and supplies. Most loan receivables are generally due each month; however, clients may rollover outstanding balances. Interest is recognized on loan receivables using the effective interest method and related annual fees are initially deferred and recognized ratably over the annual period covered. Client acquisition costs are expensed as incurred.



	March 31, 2020									December 31, 2019
	North America			International			Total			North America			International			Total
Sales-type lease receivables
Gross finance receivables	$	1,031,493		$	200,053		$	1,231,546		$	1,055,852		$	224,202		$	1,280,054
Unguaranteed residual values	40,345			11,301			51,646			41,934			11,789			53,723
Unearned income	(301,136		)	(61,379		)	(362,515		)	(319,281		)	(65,888		)	(385,169		)
Allowance for credit losses	(25,933		)	(4,883		)	(30,816		)	(10,920		)	(2,085		)	(13,005		)
Net investment in sales-type lease receivables	744,769			145,092			889,861			767,585			168,018			935,603
Loan receivables
Loan receivables	292,699			24,844			317,543			298,247			27,926			326,173
Allowance for credit losses	(7,422		)	(630		)	(8,052		)	(5,906		)	(740		)	(6,646		)
Net investment in loan receivables	285,277			24,214			309,491			292,341			27,186			319,527
Net investment in finance receivables	$	1,030,046		$	169,306		$	1,199,352		$	1,059,926		$	195,204		$	1,255,130



	Sales-type Lease Receivables						Loan Receivables
	North America		International		Total		North America		International		Total
Remaining for year ending December 31, 2020	$	321,928	$	58,207	$	380,135	$	256,712	$	24,844	$	281,556
Year ending December 31, 2021	320,823		64,327		385,150		11,660		—		11,660
Year ending December 31, 2022	217,470		43,949		261,419		9,999		—		9,999
Year ending December 31, 2023	120,443		23,495		143,938		5,222		—		5,222
Year ending December 31, 2024	46,447		8,389		54,836		6,603		—		6,603
Thereafter	4,382		1,686		6,068		2,503		—		2,503
Total	$	1,031,493	$	200,053	$	1,231,546	$	292,699	$	24,844	$	317,543



	March 31, 2020
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	1,008,879	$	197,681	$	288,180	$	24,562	$	1,519,302
Past due amounts > 90 days	22,614		2,372		4,519		282		29,787
Total	$	1,031,493	$	200,053	$	292,699	$	24,844	$	1,549,089
Past due amounts > 90 days
Still accruing interest	$	4,856	$	1,309	$	2,538	$	125	$	8,828
Not accruing interest	17,758		1,063		1,981		157		20,959
Total	$	22,614	$	2,372	$	4,519	$	282	$	29,787



	December 31, 2019
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	1,032,912	$	220,819	$	294,001	$	27,697	$	1,575,429
Past due amounts > 90 days	22,940		3,383		4,246		229		30,798
Total	$	1,055,852	$	224,202	$	298,247	$	27,926	$	1,606,227
Past due amounts > 90 days
Still accruing interest	$	4,835	$	1,081	$	2,094	$	121	$	8,131
Not accruing interest	18,105		2,302		2,152		108		22,667
Total	$	22,940	$	3,383	$	4,246	$	229	$	30,798

We estimate an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay, current conditions, reasonable and supportable forecasts and current economic outlook. Credit losses are estimated at the portfolio level based on asset type and geographic market. Historical loss experience was based on actual loss rates over the average term of the asset of five years for sales-type lease receivables and three years for loan receivables (including accrued interest). Additionally, we evaluate current conditions and review third-party economic forecasts on a quarterly basis to determine the impact on the allowance for credit losses. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves. The allowance for credit losses for the three months ended March 31, 2020 includes an increased probability of an economic recession and resulting impact on a client's future ability to pay amounts due.

We establish credit approval limits based on the credit quality of the client and the type of equipment financed. Our policy is to discontinue revenue recognition for lease receivables that are more than 120 days past due and for loan receivables that are more than 90 days past due. We resume revenue recognition when the client's payments reduce the account aging to less than 60 days past due. Finance receivables deemed uncollectible are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. As of March 31, 2020, we believe that our finance receivable credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients. We have not experienced a significant change in the collections of amounts due, but in light of the current economic situation, it is possible that our delinquency rates could increase.



	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at December 31, 2019	$	10,920		$	2,085		$	5,906		$	740		$	19,651
Cumulative effect of accounting change	9,271			1,750			(1,116		)	(402		)	9,503
Amounts charged to expense	6,892			1,345			4,006			403			12,646
Write-offs	(1,618		)	(248		)	(2,058		)	(104		)	(4,028		)
Recoveries	592			31			691			—			1,314
Other	(124		)	(80		)	(7		)	(7		)	(218		)
Balance at March 31, 2020	$	25,933		$	4,883		$	7,422		$	630		$	38,868

	Sales-type Lease Receivables						Loan Receivables
	North America			International			North America			International			Total
Balance at January 1, 2019	$	10,253		$	2,355		$	6,777		$	837		$	20,222
Amounts charged to expense	3,399			231			957			20			4,607
Write-offs	(878		)	(245		)	(2,280		)	(169		)	(3,572		)
Recoveries	347			40			942			—			1,329
Other	15			(497		)	3			44			(435		)
Balance at March 31, 2019	$	13,136		$	1,884		$	6,399		$	732		$	22,151

The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, and a detailed manual review of their financial condition and payment history or an automated process for certain small dollar applications. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes. The portfolio management processes in place track that our global strategy is executed, collection resources are allocated appropriately and enhanced tools and processes are implemented as needed.

We use a third party to score the majority of the North America portfolio on a quarterly basis using a commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. A fourth class is shown for accounts that are not scored. Absence of a score is not indicative of the credit quality of the account. The degree of risk (low, medium, high), as defined by the third party, refers to the relative risk that an account may become delinquent in the next 12 months.



	Sales Type Lease Receivables												Loan Receivables		Total
	2020		2019		2018		2017		2016		Prior		Loan Receivables		Total
Low	$	80,794	$	278,796	$	225,328	$	141,499	$	62,994	$	28,603	$	216,717	$	1,034,731
Medium	13,337		52,267		45,057		29,346		12,816		7,091		58,152		218,066
High	1,651		5,961		5,516		3,610		2,478		833		5,158		25,207
Not Scored	23,483		86,463		60,505		37,683		20,153		5,282		37,516		271,085
Total	$	119,265	$	423,487	$	336,406	$	212,138	$	98,441	$	41,809	$	317,543	$	1,549,089

The majority of the Not Scored amounts above is comprised of our International portfolio. We do not use a third party to score our International portfolio because the cost to do so is prohibitive, given that it is a localized process, and there is no single credit score model that covers all countries. International credit applications below $50 thousand are subjected to an automated review process. All other credit applications are manually reviewed. A manual review includes obtaining client financial information, credit reports and other available financial information. Approximately 80% of credit applications are approved or denied through the automated review process.



Remaining for year ending December 31, 2020	$	28,961
Year ending December 31, 2021	24,361
Year ending December 31, 2022	9,159
Year ending December 31, 2023	4,262
Year ending December 31, 2024	1,165
Thereafter	60
Total	$	67,968