Loan Servicing Activities and Acquired Loans Receivable, Net

3 Months Ended

Mar. 31, 2024

Guarantees and Product Warranties [Abstract]

Loan Servicing Activities and Acquired Loans Receivable, Net

Changes in the contingent liability for expected credit losses for the three months ended March 31, 2024 and 2023 were as follows (in millions):


	Three Months Ended March 31,
	2024		2023
Beginning balance	$	29	$	14
Credit loss expense	11		12
Reductions due to loan purchase	(14)		(7)
Ending balance	$	26	$	19

As of March 31, 2024 and December 31, 2023, the balance of the non-contingent stand-ready liability was $11 million.

As of March 31, 2024 and December 31, 2023, $57 million and $55 million, respectively, were classified as restricted cash on the condensed consolidated balance sheets, representing cash held with commercial lending institutions. The restrictions are related to cash held as collateral pursuant to an agreement with the originating third-party bank for the working capital loans serviced by Toast Capital.

- Definition

The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

+ References + Details