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LOANS RECEIVABLE, NET
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
LOANS RECEIVABLE, NET LOANS RECEIVABLE, NET
December 31,
20242023
(In millions)
Loans receivable$6,346 $3,671 
Allowance for doubtful accounts(1,630)(1,042)
Current loans receivable, net$4,716 $2,629 
December 31,
20242023
(In millions)
Loans receivable$227 $107 
Allowance for doubtful accounts(48)(42)
Non current loans receivable, net$179 $65 
The Company classifies loans receivable as “Merchant”, “Consumer”, “Credit cards” and “Asset-backed”. As of December 31, 2024 and 2023, Loans receivable, net were as follows:
December 31, 2024
Loans receivableAllowance for doubtful accountsLoans receivable, net
(In millions)
Merchant$1,205 $(417)$788 
Consumer2,591 (696)1,895 
Credit cards2,639 (557)2,082 
Asset-backed138 (8)130 
Total$6,573 $(1,678)$4,895 

December 31, 2023
 Loans receivable Allowance for doubtful accounts Loans receivable, net
(In millions)
Merchant$761 $(256)$505 
Consumer1,789 (591)1,198 
Credit cards1,209 (236)973 
Asset-backed19 (1)18 
Total$3,778 $(1,084)$2,694 

The allowance for doubtful accounts with respect to the Company’s loans receivable amounts to $1,708 million and $1,102 million as of December 31, 2024 and 2023, respectively, which includes $30 million and $18 million related to unused agreed loan commitment on credit cards portfolio presented in Other liabilities of the consolidated balance sheets as of December 31, 2024 and 2023, respectively.
As of December 31, 2024 and 2023, the Company is exposed to off-balance sheet unused agreed loan commitment on credit cards portfolio which expose the Company to credit risks for $2,872 million and $934 million, respectively. For the years ended December 31, 2024, 2023 and 2022 the Company recognized in Provision for doubtful accounts $18 million, $8 million and $8 million as expected credit losses, respectively.
From time to time, the Company sells loans receivable related to its lending solution. In this regard, during 2024, the Company signed a contract with a third party to sell an amount up to $100 million dollar of its loans receivable, as part of its funding strategy. These loans were originated by its Mexican subsidiary and provided to its local users. This transaction is accounted for as a true sale and the Company has a continuing involvement related to a servicing fee charged to the purchaser for collection services and regarding a beneficial interest retained by the Company over the transferred assets. Both involvement events do not preclude the fact that this operation qualifies as a true sale as the purchaser has full control over the transferred assets. As of December 31, 2024, the Company sold $44 million of loans receivable and recorded a gain of $1 million related to the aforementioned contract.
The following tables summarize the allowance for doubtful accounts activity during the years ended December 31, 2024, 2023 and 2022:
December 31, 2024
Merchant
ConsumerCredit cards
Asset-backed
Total
(In millions)
Balance at beginning of year$256 $591 $236 $1 $1,084 
Net charged to Net Income452 759 595 9 1,815 
Currency translation adjustments(82)(155)(98)(1)(336)
Write-offs (209)(499)(176)(1)(885)
Balance at end of year$417 $696 $557 $8 $1,678 
December 31, 2023
Merchant
ConsumerCredit cards
Asset-backed
Total
(In millions)
Balance at beginning of year$265 $614 $225 $— $1,104 
Net charged to Net Income233 571 211 1 1,016 
Currency translation adjustments9 6 18 — 33 
Write-offs(251)(600)(218)— (1,069)
Balance at end of year$256 $591 $236 $1 $1,084 
December 31, 2022
MerchantConsumerCredit cardsTotal
(In millions)
Balance at beginning of year$155 $232 $48 $435 
Net charged to Net Income248 600 210 1,058 
Currency translation adjustments— (9)(1)(10)
Write-offs(138)(209)(32)(379)
Balance at end of year$265 $614 $225 $1,104 

The Company closely monitors credit quality for all loans receivable on a recurring basis to assess and manage its exposure to credit risk. To assess merchants and consumers seeking a loan under the lending solution, the Company uses, among other indicators, risk models internally developed, as a credit quality indicator to help predict the merchant’s and consumer’s ability to repay the principal balance and interest related to the credit. The risk model uses multiple variables as predictors of the merchant’s and consumer’s ability to repay the credit, including external and internal indicators. Internal indicators consider user behavior related to credit/payment history, and with lower weight in the risk models, the Company uses number of transactions in the Company’s ecosystem and merchant’s annual sales volume, among other indicators. In addition, the Company considers external bureau information to enhance the model and the decision making process.
The amortized cost of the loans receivable classified by the Company’s credit quality internal indicator was as follows:
December 31,
20242023
(In millions)
1-14 days past due$125 $99 
15-30 days past due146 92 
31-60 days past due175 114 
61-90 days past due167 103 
91-120 days past due178 111 
121-150 days past due155 97 
151-180 days past due138 82 
181-210 days past due129 76 
211-240 days past due118 74 
241-270 days past due121 69 
271-300 days past due109 59 
301-330 days past due112 74 
331-360 days past due90 66 
Total past due1,763 1,116 
To become due4,810 2,662 
Total$6,573 $3,778 

As of December 31, 2024 and 2023, renegotiations represented 1.4% and 2.8% of the loans receivable portfolio, respectively.
As described in Note 2 – Summary of significant accounting policies, the Company places loans on non-accrual status at 90 days past due, except for credit card loans which are placed on non-accrual status 60 to 65 days past due. Interests related to loans on non-accrual status are recognized on cash-basis. There are no loans receivable on non-accrual status for which there is no related allowance for doubtful accounts.