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Notes Receivable, Net
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Notes Receivable, net

Note 4 – 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 $4.0 million, net of unamortized deferred fees and costs on originated loans. The activity during 2021 includes the issuance of additional notes of approximately $8.0 million, principal payments made by borrowers of approximately $4.0 million, the transfer of notes to the Company's joint venture, HGC Funding I LLC and Origination I LLC, of approximately $2.0 million, and adjustments to the deferred fees and costs balance of approximately $0.1 million.

The table below shows the Company’s lending activity during 2021 and 2020:

 

 

 

2021

 

 

2020

 

Notes receivable, beginning of year

 

$

2,079

 

 

$

2,685

 

Loan originations

 

 

8,039

 

 

 

6,081

 

Transfer of notes

 

 

(1,961

)

 

 

(4,951

)

Principal repayments

 

 

(3,985

)

 

 

(1,736

)

Notes receivable, end of year

 

 

4,172

 

 

 

2,079

 

Deferred financing fees and costs, net

 

 

(134

)

 

 

7

 

Notes receivable, net, end of year

 

$

4,038

 

 

$

2,086

 

 

As of December 31, 2021, the Company has not recorded an allowance for credit losses related to notes receivable outstanding.