Finance receivables are comprised of sales-type lease receivables, secured loans and unsecured loans. Sales-type leases and secured loans are from financing options provided to clients for Pitney Bowes equipment or leasing of other manufacturers' equipment and are generally due in installments over periods ranging from three to five years. Unsecured loans comprise revolving credit lines offered to our clients for postage, supplies and working capital purposes. These revolving credit lines are generally due monthly; however, clients may rollover outstanding balances. Interest is recognized on finance receivables using the effective interest method. Annual fees are recognized ratably over the annual period covered and client acquisition costs are expensed as incurred. All finance receivables are in our SendTech Solutions segment and we segregate finance receivables into a North America portfolio and an International portfolio.


	March 31, 2022						December 31, 2021
	North America		International		Total		North America		International		Total
Sales-type lease receivables
Gross finance receivables	$	959,257	$	172,840	$	1,132,097	$	958,440	$	187,831	$	1,146,271
Unguaranteed residual values	38,157		10,171		48,328		37,896		10,717		48,613
Unearned income	(243,818)		(54,190)		(298,008)		(246,381)		(56,643)		(303,024)
Allowance for credit losses	(18,960)		(2,790)		(21,750)		(19,546)		(3,246)		(22,792)
Net investment in sales-type lease receivables	734,636		126,031		860,667		730,409		138,659		869,068
Loan receivables
Loan receivables	274,661		21,028		295,689		262,310		20,155		282,465
Allowance for credit losses	(3,297)		(184)		(3,481)		(3,259)		(167)		(3,426)
Net investment in loan receivables	271,364		20,844		292,208		259,051		19,988		279,039
Net investment in finance receivables	$	1,006,000	$	146,875	$	1,152,875	$	989,460	$	158,647	$	1,148,107


	Sales-type Lease Receivables						Loan Receivables
	North America		International		Total		North America		International		Total
Remainder 2022	$	289,762	$	49,184	$	338,946	$	232,528	$	21,028	$	253,556
2023	302,598		55,706		358,304		18,278		—		18,278
2024	201,413		35,883		237,296		12,964		—		12,964
2025	113,862		20,896		134,758		8,246		—		8,246
2026	47,423		9,061		56,484		2,417		—		2,417
Thereafter	4,199		2,110		6,309		228		—		228
Total	$	959,257	$	172,840	$	1,132,097	$	274,661	$	21,028	$	295,689


	March 31, 2022
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	951,491	$	170,651	$	271,093	$	20,944	$	1,414,179
Past due amounts > 90 days	7,766		2,189		3,568		84		13,607
Total	$	959,257	$	172,840	$	274,661	$	21,028	$	1,427,786
Past due amounts > 90 days
Still accruing interest	$	2,444	$	666	$	—	$	—	$	3,110
Not accruing interest	5,322		1,523		3,568		84		10,497
Total	$	7,766	$	2,189	$	3,568	$	84	$	13,607


	December 31, 2021
	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Past due amounts 0 - 90 days	$	950,138	$	185,057	$	258,514	$	20,018	$	1,413,727
Past due amounts > 90 days	8,302		2,774		3,796		137		15,009
Total	$	958,440	$	187,831	$	262,310	$	20,155	$	1,428,736
Past due amounts > 90 days
Still accruing interest	$	4,964	$	682	$	—	$	—	$	5,646
Not accruing interest	3,338		2,092		3,796		137		9,363
Total	$	8,302	$	2,774	$	3,796	$	137	$	15,009

We provide an allowance for credit losses based on historical loss experience, the nature of our portfolios, adverse situations that may affect a client's ability to pay and current economic conditions and outlook based on reasonable and supportable forecasts. We continually evaluate the adequacy of the allowance for credit losses and adjust as necessary. The assumptions used in determining an estimate of credit losses are inherently subjective and actual results may differ significantly from estimated reserves.

Credit approval limits are established based on the credit quality of the client and the type of equipment financed. We cease financing revenue recognition for lease receivables that are more than 120 days past due and for unsecured loan receivables that are more than 90 days past due. Revenue recognition is resumed when the client's payments reduce the account aging to less than 60 days past due. Finance receivables are written off against the allowance after all collection efforts have been exhausted and management deems the account to be uncollectible. We believe that our credit risk is low because of the geographic and industry diversification of our clients and small account balances for most of our clients.


	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Balance at January 1, 2022	$	19,546	$	3,246	$	3,259	$	167	$	26,218

Amounts charged to expense	297		47		616		143		1,103
Write-offs	(1,640)		(360)		(1,341)		(117)		(3,458)
Recoveries	744		—		761		—		1,505
Other	13		(143)		2		(9)		(137)
Balance at March 31, 2022	$	18,960	$	2,790	$	3,297	$	184	$	25,231

	Sales-type Lease Receivables				Loan Receivables
	North America		International		North America		International		Total
Balance at January 1, 2021	$	22,917	$	6,006	$	6,484	$	462	$	35,869

Amounts charged to expense	154		61		763		4		982
Write-offs	(1,024)		(371)		(1,833)		(3)		(3,231)
Recoveries	935		29		991		—		1,955
Other	16		(119)		2		—		(101)
Balance at March 31, 2021	$	22,998	$	5,606	$	6,407	$	463	$	35,474

The extension of credit and management of credit lines to new and existing clients uses a combination of a client's credit score, where available, a detailed manual review of their financial condition and payment history, or an automated process. Once credit is granted, the payment performance of the client is managed through automated collections processes and is supplemented with direct follow up should an account become delinquent. We have robust automated collections and extensive portfolio management processes to ensure that our global strategy is executed, collection resources are allocated and enhanced tools and processes are implemented as needed.

Over 85% of our finance receivables are within the North American portfolio. We use a third party to score the majority of this portfolio on a quarterly basis using a proprietary commercial credit score. The relative scores are determined based on a number of factors, including financial information, payment history, company type and ownership structure. We stratify the third party's credit scores of our clients into low, medium and high-risk accounts. Due to timing and other issues, our entire portfolio may not be scored at period end. We report these amounts as "Not Scored"; however, absence of a score is not indicative of the credit quality of the account. The third-party credit score is used to predict the payment behaviors of our clients and the probability that an account will become greater than 90 days past due during the subsequent 12-month period.

We do not use a third party to score our International portfolio because the cost to do so is prohibitive as there is no single credit score model that covers all countries. Accordingly, the entire International portfolio is reported in the Not Scored category. This portfolio comprises approximately 15% of total finance receivables. Most of the International credit applications are small dollar applications (i.e. below $50 thousand) and are subjected to an automated review process. Larger credit applications are manually reviewed, which includes obtaining client financial information, credit reports and other available financial information.

The table below shows gross finance receivables by relative risk class and year of origination based on the relative scores of the accounts within each class as of March 31, 2022 and December 31, 2021.


	March 31, 2022
	Sales Type Lease Receivables												Loan Receivables		Total
	2022		2021		2020		2019		2018		Prior
Low	$	76,624	$	253,998	$	180,703	$	146,716	$	79,663	$	35,833	$	202,419	$	975,956
Medium	13,619		44,487		32,696		27,581		14,456		8,744		57,783		199,366
High	1,558		5,037		4,876		3,688		2,033		1,028		4,153		22,373
Not Scored	26,074		73,694		38,874		35,487		20,873		3,755		31,334		230,091
Total	$	117,875	$	377,216	$	257,149	$	213,472	$	117,025	$	49,360	$	295,689	$	1,427,786

	December 31, 2021
	Sales Type Lease Receivables												Loan Receivables		Total
	2021		2020		2019		2018		2017		Prior
Low	$	274,191	$	195,421	$	162,479	$	95,661	$	33,698	$	14,862	$	192,161	$	968,473
Medium	43,403		34,955		31,038		17,895		6,981		3,619		55,708		193,599
High	5,474		5,017		4,044		2,708		849		889		4,822		23,803
Not Scored	45,644		54,097		47,973		33,998		19,161		12,214		29,774		242,861
Total	$	368,712	$	289,490	$	245,534	$	150,262	$	60,689	$	31,584	$	282,465	$	1,428,736