Loans Held for Investment, Net

9 Months Ended

Sep. 30, 2024

The Company classifies its loans as either current or past due. The following reflects the credit quality of the Company’s loans held for investment, as delinquency status has been identified as the primary credit quality indicator, based on the recorded amount of the receivable in delinquent status as of September 30, 2024:


			Past Due
	Current		30-59 Days		60-89 days		> 90 days		Total
Loans held for investment	$	4,770,333	$	66,839	$	46,173	$	30,029	$	4,913,374
Allowance for credit losses									(665,142)
Loans held for investment, net									$	4,248,232

These loans have a variety of lending terms as well as original maturities ranging from six weeks to thirty-six months, with the large majority of the Company’s loans having a term of approximately two years. The average remaining life of the Company’s loans was approximately 12 months as of September 30, 2024. Given that the Company’s loan portfolio focuses on unsecured installment loans, the Company evaluates the portfolio as a single homogeneous loan portfolio and performs further analysis by product type as needed.

The Company closely monitors credit quality for its loans held for investment to manage and evaluate exposure to credit risk. Credit risk management begins with initial underwriting, where a consumer is assessed based on the Company’s underwriting and credit policy. This includes Know Your Customer (“KYC”) identification, traditional credit scoring models, and various Fair Credit Reporting Act (“FCRA”) permissible consumer credit and risk data. Credit quality is monitored subsequent to underwriting based on performance metrics that include, but are not limited to, delinquency and default metrics. The Company uses software that monitors credit quality of the respective portfolio and performs analysis on credit data.

The changes in allowance for credit losses on loans held for investment as of September 30, 2024 is as follows:


Balance at January 1, 2024	$	—
Balance acquired from Credova Merger	1,130,515
Charge-offs	(1,015,358)
Provision for credit losses	549,985
Balance at September 30, 2024	$	665,142