LOANS RECEIVABLE, NET

12 Months Ended

Dec. 31, 2023

6.	LOANS RECEIVABLE, NET

Consumer and Small Medium sized Enterprises (“SME”) loans primarily consist of loans receivable provided to both Shopee buyers and sellers. On the buyer side, the Company offers consumption loans (SPayLater) which gives users the ability to complete their purchase first and make the payment later or in instalments, and cash loans which allows users to meet their short-term borrowing needs. On the seller side, the Company offers unsecured SME loans to help sellers expand their operations and fast escrow services to help sellers receive their funds faster and improve cash flow management.

The Company monitors credit quality for all loans receivable on a recurring basis by evaluating the customers’ prior repayment history available internally and external sources information, where applicable. The Company uses delinquency status and trends to assist in making new and ongoing credit decisions, and to plan its collection practices and strategies. The following table presents the loans receivable by each of the loan portfolio:

	As of December 31,
		2022 $			2023 $

Consumer and SME loans			2,268,844			2,656,484
Other loans			45,405			150,297
			2,314,249			2,806,781
Allowance for credit losses			(238,819	)		(321,568	)
			2,075,430			2,485,213

Transfers of loans receivable that do not qualify for sale accounting continue to be reported on the Company’s consolidated balance sheets. As of December 31, 2022 and 2023, $39,001 and $133,578, respectively, of such loans receivable remained outstanding (see Note 12).

The following table is a summary of the delinquency status of the loans receivable by year of origination:

	As of December 31, 2022
	Year of origination
	2022		2021		2020		2019		2018		Prior		Total
Consumer and SME loans	$		$		$		$		$		$		$
Delinquency:
Current		2,050,721		641		807		2,790		1,702		786		2,057,447
Past due
- 1 to 30 days		70,761		206		143		97		66		14		71,287
- 31 to 60 days		49,493		341		96		490		560		190		51,170
- 61 to 90 days		44,065		581		18		16		22		–		44,702
- More than 90 days		26,308		16,718		913		146		39		114		44,238
		2,241,348		18,487		1,977		3,539		2,389		1,104		2,268,844

Other loans
Delinquency:
Current		918		6,159		30,778		4,134		1,282		923		44,194
Past due
- 1 to 30 days		10		37		117		148		13		–		325
- 31 to 60 days		–		–		38		249		32		–		319
- 61 to 90 days		–		22		–		1		42		2		67
- More than 90 days		–		64		105		212		79		40		500
		928		6,282		31,038		4,744		1,448		965		45,405

	As of December 31, 2023
	Year of origination
	2023		2022		2021		2020		2019		Prior		Total
Consumer and SME loans	$		$		$		$		$		$		$
Delinquency:
Current		2,448,363		4,934		–		–		–		–		2,453,297
Past due
- 1 to 30 days		64,015		1,054		–		–		–		–		65,069
- 31 to 60 days		49,419		925		–		–		–		–		50,344
- 61 to 90 days		42,239		2,054		–		–		–		–		44,293
- More than 90 days		41,843		1,638		–		–		–		–		43,481
		2,645,879		10,605		–		–		–		–		2,656,484
Current period gross write-off		182,145		358,503		4,834		–		–		–		545,482

Other loans
Delinquency:
Current		104,770		927		399		30,769		3,132		2,214		142,211
Past due
- 1 to 30 days		4,660		8		6		98		86		17		4,875
- 31 to 60 days		1,776		4		30		38		260		275		2,383
- 61 to 90 days		10		9		–		28		51		16		114
- More than 90 days		69		52		17		210		242		124		714
		111,285		1,000		452		31,143		3,771		2,646		150,297
Current period gross write-off		–		16		12		205		775		220		1,228

An analysis of the loans receivable’s allowance for credit losses by portfolio segment is as follows:

	Consumer and SME loans $			Other loans $			Total $
Balance as of January 1, 2022		89,977			7,699			97,676
Provision for credit losses		494,815			(1,202	)		493,613
Write-off of loans receivable		(331,401	)		(4,772	)		(336,173	)
Exchange differences		(16,012	)		(285	)		(16,297	)
Balance as of December 31, 2022		237,379			1,440			238,819
Provision for credit losses		624,143			3,785			627,928
Write-off of loans receivable		(545,482	)		(1,228	)		(546,710	)
Exchange differences		1,518			13			1,531
Balance as of December 31, 2023		317,558			4,010			321,568