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Advances Receivable, net
 9 Months Ended
Mar. 31, 2019
Advances Receivable [Abstract]  
Advances Receivable, net
6.
Advances Receivable, net
 
In December 2018, we entered into an arrangement with an MCA originator to participate in its MCA activity. We made an initial advance of $5,000 to the originator, which in turn advanced these funds to merchants as part of a syndication. In February 2019, we advanced an additional $3,000 to the originator. As receipts have been paid to us by the merchants, we have used the collected funds to fund additional MCAs with this originator.
 
During the nine months ended March 31, 2019, we provided $4,750 of cash advances to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to six months, in exchange for paying us an upfront fee and a guaranty of the full repayment obligation from the principal of the third-party business. These prepaid fees are netted against the principal balance, earned over the six-month advance period and are reported as part of MCA income within the statement of operations. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary. As of March 31, 2019, $2,000 of these advances had been repaid. The remaining $2,750 was not due yet for repayment as of March 31, 2019 and management believes this remaining amount is fully collectible.
 
Total advances receivable, net consist of the following:
 
 
 
 
 
 
 
 
 
Provision
 
 
 
 
 
 
Advance
 
 
Deferred
 
 
for Credit
 
 
Carrying
 
 
 
Principal
 
 
Fees
 
 
Losses
 
 
Value
 
Merchant cash advances
 
$
8,467
 
 
$
-
 
 
$
(838
)
 
$
7,629
 
Aviation advance
 
 
2,750
 
 
 
(149
)
 
 
-
 
 
 
2,601
 
Advances receivable, net
 
$
11,217
 
 
$
(149
)
 
$
(838
)
 
$
10,230