I like how you are attempting to measure the impact of the economy on the low-income households. In the small dollar installment loan market, the lenders convert from offering loans during January-March to offering tax preparation services. It makes sense if you think about the customer base. A customer may borrow during November and December and payoff the loans with their tax refunds.
One company you can follow and get a clear understanding of the tax returns might be through World Acceptance Corporation.
You can see the increase/demand in their quarterly reports. If you want to see the tax return activity trend over the past few years you can check out page 4 their December 2023 10K at the link below. The 10Q will be out in a few weeks and you can see how this year has shaped up.
Let me know if you want some other methods of tracking this segment of our economy and I will share more insights if you are interested.
Tax Preparation Services and Advances. The Company also offers income tax return preparation and electronic filing services. This program is provided in all but a few of the Company’s branches. The Company prepared approximately 75,000, 81,000 and 77,000 returns in fiscal years 2023, 2022, and 2021, respectively. Net revenue generated by the Company from this program during fiscal 2023, 2022, and 2021 amounted to approximately $24.0 million, $24.5 million, and $20.6 million, respectively. In addition, our tax customers are eligible to receive an interest and fee-free tax advance loan which is generally a percentage of the anticipated tax refund amount. The Company believes that this is a beneficial service for its existing customer base as well as non-loan customers, and it plans to continue to promote this program.
Good morning, Adam.
I like how you are attempting to measure the impact of the economy on the low-income households. In the small dollar installment loan market, the lenders convert from offering loans during January-March to offering tax preparation services. It makes sense if you think about the customer base. A customer may borrow during November and December and payoff the loans with their tax refunds.
One company you can follow and get a clear understanding of the tax returns might be through World Acceptance Corporation.
You can see the increase/demand in their quarterly reports. If you want to see the tax return activity trend over the past few years you can check out page 4 their December 2023 10K at the link below. The 10Q will be out in a few weeks and you can see how this year has shaped up.
Let me know if you want some other methods of tracking this segment of our economy and I will share more insights if you are interested.
https://last10k.com/sec-filings/wrld
Tax Preparation Services and Advances. The Company also offers income tax return preparation and electronic filing services. This program is provided in all but a few of the Company’s branches. The Company prepared approximately 75,000, 81,000 and 77,000 returns in fiscal years 2023, 2022, and 2021, respectively. Net revenue generated by the Company from this program during fiscal 2023, 2022, and 2021 amounted to approximately $24.0 million, $24.5 million, and $20.6 million, respectively. In addition, our tax customers are eligible to receive an interest and fee-free tax advance loan which is generally a percentage of the anticipated tax refund amount. The Company believes that this is a beneficial service for its existing customer base as well as non-loan customers, and it plans to continue to promote this program.