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Notes Receivable, Net | 12 Months Ended
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Dec. 31, 2020
Receivables [Abstract] |
Notes Receivable, net | Note 3 – Notes Receivable, net The Company’s notes receivable balance consists of loans to buyers of charged-off and nonperforming receivable portfolios which resulted in a total outstanding principal balance of approximately $2.1 million, net of unamortized deferred fees and costs on originated loans. The activity during 2020 includes the issuance of additional notes of approximately $6.1 million, principal payments made by borrowers of approximately $1.7 million, and the transfer of notes to partners as detailed below. In March 2020, the Company closed a $6.0 million receivables purchasing agreement with a partner, an alternative asset manager focused on asset-based lending transactions, for the purpose of funding a portion of loans to debt purchasing clients. In March 2020, approximately $1.0 million of the notes receivable balance for certain loans was transferred to the partner. Additionally, in March 2020 HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In March 2020, approximately $3.0 million of the notes receivable balance for certain loans was transferred into the joint venture. In May 2020, an additional $1.0 million of the notes receivable balance for certain loans was transferred into the joint venture. Refer to Note 5 for further information. As of December 31, 2020, the Company has not recorded an allowance for credit losses related to notes receivable outstanding. The Company’s total gross loan amount as shown in the table below represents all loans funded, either solely by HGC or in partnership with our two senior lenders. The HGC share of loan amount represents the Company’s portion of the total gross loan amount. The table below shows the Company’s lending activity during 2020 and 2019:
|  | 2020 |  |  | 2019 |
|  | Total Gross Loan Amount |  |  | HGC Share of Loan Amount |  |  | Total Gross Loan Amount |  |  | HGC Share of Loan Amount |
Notes receivable outstanding, beginning of year |  | $ | 2,661 |  |  | $ | 2,661 |  |  | $ | — |  |  | $ | — |
Loan originations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HGC funded loans |  |  | 5,781 |  |  |  | 5,781 |  |  |  | 2,851 |  |  |  | 2,851 |
Loans funded with senior lender #1 |  |  | 1,201 |  |  |  | 300 |  |  |  | — |  |  |  | — |
Loans funded within joint ventures with senior lender #2 |  |  | 3,843 |  |  |  | 663 |  |  |  | — |  |  |  | — |
Total loan originations |  |  | 10,825 |  |  |  | 6,744 |  |  |  | 2,851 |  |  |  | 2,851 |
Transfer of notes to/from senior lenders: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HGC funded loans |  |  | (5,340 | ) |  |  | (5,340 | ) |  |  | — |  |  |  | — |
Loans funded with senior lender #1 |  |  | 1,317 |  |  |  | 329 |  |  |  | — |  |  |  | — |
Loans funded within joint ventures with senior lender #2 |  |  | 4,023 |  |  |  | 762 |  |  |  | — |  |  |  | — |
Total transfer of notes to/from senior lenders: |  |  | — |  |  |  | (4,249 | ) |  |  | — |  |  |  | — |
Principal repayments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HGC funded loans |  |  | (1,022 | ) |  |  | (1,022 | ) |  |  | (166 | ) |  |  | (166 | )
Loans funded with senior lender #1 |  |  | (2,517 | ) |  |  | (629 | ) |  |  | — |  |  |  | — |
Loans funded within joint ventures with senior lender #2 |  |  | (7,868 | ) |  |  | (1,426 | ) |  |  | — |  |  |  | — |
Total principal payments |  |  | (11,407 | ) |  |  | (3,077 | ) |  |  | (166 | ) |  |  | (166 | )
Deferred financing fees and costs, net |  |  | 7 |  |  |  | 7 |  |  |  | (24 | ) |  |  | (24 | )
Notes receivable outstanding, end of year |  | $ | 2,086 |  |  | $ | 2,086 |  |  | $ | 2,661 |  |  | $ | 2,661 |
Current portion of notes receivable, net |  |  |  |  |  | $ | 1,338 |  |  |  |  |  |  | $ | 1,295 |
Non-current portion of notes receivable, net |  |  |  |  |  |  | 748 |  |  |  |  |  |  |  | 1,366 |
Notes receivable, net, end of year |  |  |  |  |  | $ | 2,086 |  |  |  |  |  |  | $ | 2,661 |

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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- References No definition available. + Details
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