Warehouse Credit Facilities of Consolidated VIEs

12 Months Ended

Dec. 31, 2024

Warehouse Credit Facilities of Consolidated VIEs [Abstract]

Warehouse Credit Facilities of Consolidated VIEs

10. Warehouse Credit Facilities of Consolidated VIEs

UACC has four senior secured warehouse facility agreements (the “Warehouse Credit Facilities”) with banking institutions as of December 31, 2024. The Warehouse Credit Facilities are collateralized by eligible finance receivables and available borrowings are computed based on a percentage of eligible finance receivables. As of December 31, 2024 and 2023, the Company had excess borrowing capacity of $28.2 million and $56.9 million on UACC’s Warehouse Credit Facilities, respectively. The terms of the Warehouse Credit Facilities include the following (in thousands):

	Facility One		Facility Two		Facility Three		Facility Four
Execution date		May 30, 2012		November 19, 2013		July 11, 2019		November 18, 2022
Commitment termination date		July 21, 2025		June 2, 2025		August 29, 2025		September 12, 2025
Aggregate borrowings limit	$	200,000	$	200,000	$	200,000	$	225,000
As of December 31, 2024
Aggregate principal balance of finance receivables pledged as collateral	$	—	$	76,523	$	223,901	$	143,514
Outstanding balance	$	—	$	62,290	$	175,568	$	122,054
Restricted cash	$	—	$	3,169	$	10,398	$	5,328
As of December 31, 2023
Aggregate principal balance of finance receivables pledged as collateral	$	223,207	$	64,970	$	165,927	$	92,978
Outstanding balance	$	177,375	$	51,012	$	117,264	$	75,617
Restricted cash	$	8,961	$	2,550	$	6,485	$	2,692

As of December 31, 2024 and 2023, the Company’s weighted average interest rate on the Warehouse Credit Facilities borrowings was approximately 6.32% and 6.98%, respectively.

The Company’s ability to utilize its Warehouse Credit Facilities is primarily conditioned on the satisfaction of certain legal, operating, administrative and financial covenants contained within the agreements. These include covenants that require UACC to maintain a minimum tangible net worth, minimum liquidity levels, specified leverage ratios and certain indebtedness levels. Failure to satisfy these and or any other requirements contained within the agreements would restrict access to the Warehouse Credit Facilities. Certain breaches of covenants may also result in acceleration of the repayment of borrowings prior to the scheduled maturity. As of December 31, 2024 and 2023, the Company was in compliance with all covenants related to the Warehouse Credit Facilities.