prior to august 1 , 2019 , finwise bank retained 5 % of the balances and sold a 95 % participation to ef spv . on august 1 , 2019 , ef spv purchased an additional 1 % participation in the outstanding portfolio with the participation percentage revised going forward to 96 % . these loan participation purchases are funded through a separate financing facility ( the `` ef spv facility `` ) , effective february 1 , 2019 , and through cash flows from operations generated by ef spv . the ef spv facility has a maximum total borrowing amount available of $ 150 million . we do not own ef spv , but we have a credit default protection agreement with ef spv whereby we provide credit protection to the investors in ef spv against rise loan losses in return for a credit premium . elevate is required to consolidate ef spv as a variable interest entity under gaap and the consolidated financial statements include revenue , losses and loans receivable related to the 96 % of the rise installment loans originated by finwise bank and sold to ef spv . 76 the elastic line of credit product is originated by a third-party lender , republic bank , which initially provides all of the funding for that product . republic bank retains 10 % of the balances of all loans originated and sells a 90 % loan participation in the elastic lines of credit . an spv structure was implemented such that the loan participations are sold by republic bank to elastic spv , ltd. ( “ elastic spv ” ) and elastic spv receives its funding from vpc in a separate financing facility ( the “ espv facility ” ) , which was finalized on july 13 , 2015. we do not own elastic spv but we have a credit default protection agreement with elastic spv whereby we provide credit protection to the investors in elastic spv against elastic loan losses in return for a credit premium . per the terms of this agreement , under us gaap , the company is the primary beneficiary of elastic spv and is required to consolidate the financial results of elastic spv as a variable interest entity ( `` vie `` ) in its consolidated financial results . the espv facility has also been amended several times and the original commitment amount of $ 50 million has grown to $ 350 million as of december 31 , 2019 . see “ —liquidity and capital resources—debt facilities . ” our management assesses our financial performance and future strategic goals through key metrics based primarily on the following three themes : revenue growth . key metrics related to revenue growth that we monitor by product include the ending and average combined loan balances outstanding , the effective apr of our product loan portfolios , the total dollar value of loans originated , the number of new customer loans made , the ending number of customer loans outstanding and the related customer acquisition costs ( “ cac ” ) associated with each new customer loan made . we include cac as a key metric when analyzing revenue growth ( rather than as a key metric within margin expansion ) . stable credit quality . since the time they were managing our legacy us products , our management team has maintained stable credit quality across the loan portfolio they were managing . additionally , in the periods covered in this management 's discussion and analysis of financial condition and results of operations , we have improved our credit quality . the credit quality metrics we monitor include net charge-offs as a percentage of revenues , the combined loan loss reserve as a percentage of outstanding combined loans , total provision for loan losses as a percentage of revenues and the percentage of past due combined loans receivable – principal . margin expansion . we expect that our operating margins will continue to expand over the near term as we lower our direct marketing costs and efficiently manage our operating expenses while continuing to improve our credit quality . over the next several years , as we continue to scale our loan portfolio , we anticipate that our direct marketing costs primarily associated with new customer acquisitions will decline to approximately 10 % of revenues and our operating expenses will decline to approximately 20 % of revenues . we aim to manage our business to achieve a long-term operating margin of 20 % , and do not expect our operating margin to increase beyond that level , as we intend to pass on any improvements over our targeted margins to our customers in the form of lower aprs . we believe this is a critical component of our responsible lending platform and over time will also help us continue to attract new customers and retain existing customers . key financial and operating metrics as discussed above , we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and in making strategic decisions . certain of our metrics are non-gaap financial measures . we believe that such metrics are useful in period-to-period comparisons of our core business . however , non-gaap financial measures are not an alternative to any measure of financial performance calculated and presented in accordance with us gaap . see “ —non-gaap financial measures ” for a reconciliation of our non-gaap measures to us gaap . 77 revenues replace_table_token_7_th _ ( 1 ) combined loans receivable is defined as loans owned by the company and consolidated vies plus loans originated and owned by third-party lenders pursuant to our cso programs . story_separator_special_tag hence , another key credit quality metric we monitor is the percentage of past due combined loans receivable – principal , as an increase in past due loans will cause an increase in our combined loan loss reserve and related additional provision for loan losses to increase the reserve . for customers that are not past due , we further stratify these loans into loss rates by payment number , as a new customer that is about to make a first loan payment has a significantly higher risk of loss than a customer who has successfully made ten payments on an existing loan with us . based on this methodology , during the past three years we have seen our combined loan loss reserve as a percentage of combined loans receivable fluctuate between approximately 13 % and 17 % depending on the overall mix of new , former and past due customer loans . recent trends . total loan loss provision for the year ended december 31 , 2019 was 49 % of revenues , which was within our targeted range of 45 % to 55 % , and lower than the 52 % in the prior year period . for the year ended december 31 , 2019 , net charge-offs as a percentage of revenues totaled 50 % , compared to 52 % in the prior year period . we expect total loan loss provision as a percentage of revenues to continue to remain within our targeted range due to ongoing maturation of the loan portfolio and continued improvements in our underwriting models and processes . the combined loan loss reserve as a percentage of combined loans receivable totaled 13 % and 14 % as of december 31 , 2019 and december 31 , 2018 , respectively , reflecting improvements in our credit quality in each product portfolio . past due loan balances at december 31 , 2019 were 10 % of total combined loans receivable - principal , down from 11 % from a year ago . additionally , we also look at principal loan charge-offs ( including both credit and fraud losses ) by vintage as a percentage of combined loans originated - principal . as the below table shows , our cumulative principal loan charge-offs through december 31 , 2019 for each annual vintage since the 2013 vintage are generally under 30 % and continue to generally trend at or slightly below our 25 % to 30 % targeted range . in the beginning of 2019 , we implemented new fraud tools that have helped lower fraud losses . additionally , we rolled out our next generation of credit models during the second quarter of 2019 and continued refining the models during the third quarter of 2019. the preliminary data on the 2019 vintage is that it is performing better than both 2017 and 2018 vintages . 82 ( 1 ) the 2019 vintage is not yet fully mature from a loss perspective . 83 margins replace_table_token_13_th _ ( 1 ) non-gaap measure . see “ —non-gaap financial measures—net charge-offs and additional provision for loan losses . ” gross margin is calculated as revenues minus cost of sales , or gross profit , expressed as a percentage of revenues , and operating margin is calculated as operating income expressed as a percentage of revenues . we expect our margins to continue to increase as we continue to scale our business while maintaining stable credit quality . we allocate all marketing spend only to new customer loans . as our loan portfolio continues to mature with more customer loans that are from repeat customers , we will be generating revenue from those repeat customer loans without incurring any related marketing expense . as a result , we expect marketing expense as a percentage of revenue to continue to decline over time resulting in an increased gross profit margin . additionally , being an online fintech company , we believe that as we continue to scale our business , we will generate operating efficiencies and our operating expense as a percentage of revenues will decline resulting in an increased operating margin . recent operating margin trends . for the year ended december 31 , 2019 , our operating margin was 15 % , which was an improvement from 12 % in the prior year period . this increase was largely due to a higher gross margin driven by lower direct marketing costs and an overall lower loan loss provision due to improved credit quality in the loan portfolio . direct marketing costs for the year ended december 31 , 2019 decreased to 7 % of revenue from 10 % in the prior year period . this decrease is due to the measured new customer growth we targeted as we focused on deploying our new credit models during the second quarter of 2019 and refining our credit models during the third quarter of 2019. the lower marketing spend , coupled with improved marketing efficiencies , resulted in a cac of $ 207 for the year ended december 31 , 2019 , which is below the low end of our targeted range of $ 250 to $ 300 and lower than the cac of $ 245 for the prior year . we expect cac to continue to be within or below our targeted range of $ 250 to $ 300 as we continue to optimize the efficiency of our marketing channels for our rise and elastic products , and benefit from decreased competition in the uk , although we may see some quarterly volatility in cac . 84 non-gaap financial measures we believe that the inclusion of the following non-gaap financial measures in this annual report on form 10-k can provide a useful measure for period-to-period comparisons of our core business , provide transparency and useful information to investors and others in understanding and evaluating our operating results , and enable investors to better compare our operating performance with the

debt facilities vpc facility vpc facility term notes on january 30 , 2014 , we entered into the vpc facility in order to fund our rise and sunny products and provide working capital . the vpc facility has been amended several times , with the most recent amendment effective february 1 , 2019 , to increase the maximum total borrowing amount available and other terms of the vpc facility . the vpc facility provided the following term notes as of december 31 , 2019 : a maximum borrowing amount of $ 350 million used to fund the rise loan portfolio ( “ us term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor , with a 1 % floor ) plus 11 % . this resulted in a blended interest rate paid of 12.79 % on debt outstanding under this facility as of december 31 , 2018 . the company entered into an interest rate cap on january 11 , 2018 to mitigate the floating interest rate risk on the aggregate $ 240 million outstanding as of december 31 , 2017. this cap matured in february 2019. upon the february 1 , 2019 amendment date , the interest rate of the debt outstanding as of the amendment date was fixed through the january 1 , 2024 maturity date at 10.23 % ( base rate of 2.73 % plus 7.5 % ) . all future borrowings under this facility will bear an interest rate at a base rate ( defined as the greater of 3-month libor , the five-year libor swap rate or 1 % ) plus 7.5 % at the borrowing date . the weighted-average base rate on the outstanding balance at december 31 , 2019 was 2.73 % and the overall rate was 10.23 % . a maximum borrowing amount of $ 132 million used to fund the uk sunny loan portfolio ( “ uk term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor rate ) plus 14 % .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```debt facilities vpc facility vpc facility term notes on january 30 , 2014 , we entered into the vpc facility in order to fund our rise and sunny products and provide working capital . the vpc facility has been amended several times , with the most recent amendment effective february 1 , 2019 , to increase the maximum total borrowing amount available and other terms of the vpc facility . the vpc facility provided the following term notes as of december 31 , 2019 : a maximum borrowing amount of $ 350 million used to fund the rise loan portfolio ( “ us term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor , with a 1 % floor ) plus 11 % . this resulted in a blended interest rate paid of 12.79 % on debt outstanding under this facility as of december 31 , 2018 . the company entered into an interest rate cap on january 11 , 2018 to mitigate the floating interest rate risk on the aggregate $ 240 million outstanding as of december 31 , 2017. this cap matured in february 2019. upon the february 1 , 2019 amendment date , the interest rate of the debt outstanding as of the amendment date was fixed through the january 1 , 2024 maturity date at 10.23 % ( base rate of 2.73 % plus 7.5 % ) . all future borrowings under this facility will bear an interest rate at a base rate ( defined as the greater of 3-month libor , the five-year libor swap rate or 1 % ) plus 7.5 % at the borrowing date . the weighted-average base rate on the outstanding balance at december 31 , 2019 was 2.73 % and the overall rate was 10.23 % . a maximum borrowing amount of $ 132 million used to fund the uk sunny loan portfolio ( “ uk term note ” ) . prior to the february 1 , 2019 amendment , the interest rate paid on this facility was a base rate ( defined as the 3-month libor rate ) plus 14 % .
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 Suspicious Activity Report : prior to august 1 , 2019 , finwise bank retained 5 % of the balances and sold a 95 % participation to ef spv . on august 1 , 2019 , ef spv purchased an additional 1 % participation in the outstanding portfolio with the participation percentage revised going forward to 96 % . these loan participation purchases are funded through a separate financing facility ( the `` ef spv facility `` ) , effective february 1 , 2019 , and through cash flows from operations generated by ef spv . the ef spv facility has a maximum total borrowing amount available of $ 150 million . we do not own ef spv , but we have a credit default protection agreement with ef spv whereby we provide credit protection to the investors in ef spv against rise loan losses in return for a credit premium . elevate is required to consolidate ef spv as a variable interest entity under gaap and the consolidated financial statements include revenue , losses and loans receivable related to the 96 % of the rise installment loans originated by finwise bank and sold to ef spv . 76 the elastic line of credit product is originated by a third-party lender , republic bank , which initially provides all of the funding for that product . republic bank retains 10 % of the balances of all loans originated and sells a 90 % loan participation in the elastic lines of credit . an spv structure was implemented such that the loan participations are sold by republic bank to elastic spv , ltd. ( “ elastic spv ” ) and elastic spv receives its funding from vpc in a separate financing facility ( the “ espv facility ” ) , which was finalized on july 13 , 2015. we do not own elastic spv but we have a credit default protection agreement with elastic spv whereby we provide credit protection to the investors in elastic spv against elastic loan losses in return for a credit premium . per the terms of this agreement , under us gaap , the company is the primary beneficiary of elastic spv and is required to consolidate the financial results of elastic spv as a variable interest entity ( `` vie `` ) in its consolidated financial results . the espv facility has also been amended several times and the original commitment amount of $ 50 million has grown to $ 350 million as of december 31 , 2019 . see “ —liquidity and capital resources—debt facilities . ” our management assesses our financial performance and future strategic goals through key metrics based primarily on the following three themes : revenue growth . key metrics related to revenue growth that we monitor by product include the ending and average combined loan balances outstanding , the effective apr of our product loan portfolios , the total dollar value of loans originated , the number of new customer loans made , the ending number of customer loans outstanding and the related customer acquisition costs ( “ cac ” ) associated with each new customer loan made . we include cac as a key metric when analyzing revenue growth ( rather than as a key metric within margin expansion ) . stable credit quality . since the time they were managing our legacy us products , our management team has maintained stable credit quality across the loan portfolio they were managing . additionally , in the periods covered in this management 's discussion and analysis of financial condition and results of operations , we have improved our credit quality . the credit quality metrics we monitor include net charge-offs as a percentage of revenues , the combined loan loss reserve as a percentage of outstanding combined loans , total provision for loan losses as a percentage of revenues and the percentage of past due combined loans receivable – principal . margin expansion . we expect that our operating margins will continue to expand over the near term as we lower our direct marketing costs and efficiently manage our operating expenses while continuing to improve our credit quality . over the next several years , as we continue to scale our loan portfolio , we anticipate that our direct marketing costs primarily associated with new customer acquisitions will decline to approximately 10 % of revenues and our operating expenses will decline to approximately 20 % of revenues . we aim to manage our business to achieve a long-term operating margin of 20 % , and do not expect our operating margin to increase beyond that level , as we intend to pass on any improvements over our targeted margins to our customers in the form of lower aprs . we believe this is a critical component of our responsible lending platform and over time will also help us continue to attract new customers and retain existing customers . key financial and operating metrics as discussed above , we regularly monitor a number of metrics in order to measure our current performance and project our future performance . these metrics aid us in developing and refining our growth strategies and in making strategic decisions . certain of our metrics are non-gaap financial measures . we believe that such metrics are useful in period-to-period comparisons of our core business . however , non-gaap financial measures are not an alternative to any measure of financial performance calculated and presented in accordance with us gaap . see “ —non-gaap financial measures ” for a reconciliation of our non-gaap measures to us gaap . 77 revenues replace_table_token_7_th _ ( 1 ) combined loans receivable is defined as loans owned by the company and consolidated vies plus loans originated and owned by third-party lenders pursuant to our cso programs . story_separator_special_tag hence , another key credit quality metric we monitor is the percentage of past due combined loans receivable – principal , as an increase in past due loans will cause an increase in our combined loan loss reserve and related additional provision for loan losses to increase the reserve . for customers that are not past due , we further stratify these loans into loss rates by payment number , as a new customer that is about to make a first loan payment has a significantly higher risk of loss than a customer who has successfully made ten payments on an existing loan with us . based on this methodology , during the past three years we have seen our combined loan loss reserve as a percentage of combined loans receivable fluctuate between approximately 13 % and 17 % depending on the overall mix of new , former and past due customer loans . recent trends . total loan loss provision for the year ended december 31 , 2019 was 49 % of revenues , which was within our targeted range of 45 % to 55 % , and lower than the 52 % in the prior year period . for the year ended december 31 , 2019 , net charge-offs as a percentage of revenues totaled 50 % , compared to 52 % in the prior year period . we expect total loan loss provision as a percentage of revenues to continue to remain within our targeted range due to ongoing maturation of the loan portfolio and continued improvements in our underwriting models and processes . the combined loan loss reserve as a percentage of combined loans receivable totaled 13 % and 14 % as of december 31 , 2019 and december 31 , 2018 , respectively , reflecting improvements in our credit quality in each product portfolio . past due loan balances at december 31 , 2019 were 10 % of total combined loans receivable - principal , down from 11 % from a year ago . additionally , we also look at principal loan charge-offs ( including both credit and fraud losses ) by vintage as a percentage of combined loans originated - principal . as the below table shows , our cumulative principal loan charge-offs through december 31 , 2019 for each annual vintage since the 2013 vintage are generally under 30 % and continue to generally trend at or slightly below our 25 % to 30 % targeted range . in the beginning of 2019 , we implemented new fraud tools that have helped lower fraud losses . additionally , we rolled out our next generation of credit models during the second quarter of 2019 and continued refining the models during the third quarter of 2019. the preliminary data on the 2019 vintage is that it is performing better than both 2017 and 2018 vintages . 82 ( 1 ) the 2019 vintage is not yet fully mature from a loss perspective . 83 margins replace_table_token_13_th _ ( 1 ) non-gaap measure . see “ —non-gaap financial measures—net charge-offs and additional provision for loan losses . ” gross margin is calculated as revenues minus cost of sales , or gross profit , expressed as a percentage of revenues , and operating margin is calculated as operating income expressed as a percentage of revenues . we expect our margins to continue to increase as we continue to scale our business while maintaining stable credit quality . we allocate all marketing spend only to new customer loans . as our loan portfolio continues to mature with more customer loans that are from repeat customers , we will be generating revenue from those repeat customer loans without incurring any related marketing expense . as a result , we expect marketing expense as a percentage of revenue to continue to decline over time resulting in an increased gross profit margin . additionally , being an online fintech company , we believe that as we continue to scale our business , we will generate operating efficiencies and our operating expense as a percentage of revenues will decline resulting in an increased operating margin . recent operating margin trends . for the year ended december 31 , 2019 , our operating margin was 15 % , which was an improvement from 12 % in the prior year period . this increase was largely due to a higher gross margin driven by lower direct marketing costs and an overall lower loan loss provision due to improved credit quality in the loan portfolio . direct marketing costs for the year ended december 31 , 2019 decreased to 7 % of revenue from 10 % in the prior year period . this decrease is due to the measured new customer growth we targeted as we focused on deploying our new credit models during the second quarter of 2019 and refining our credit models during the third quarter of 2019. the lower marketing spend , coupled with improved marketing efficiencies , resulted in a cac of $ 207 for the year ended december 31 , 2019 , which is below the low end of our targeted range of $ 250 to $ 300 and lower than the cac of $ 245 for the prior year . we expect cac to continue to be within or below our targeted range of $ 250 to $ 300 as we continue to optimize the efficiency of our marketing channels for our rise and elastic products , and benefit from decreased competition in the uk , although we may see some quarterly volatility in cac . 84 non-gaap financial measures we believe that the inclusion of the following non-gaap financial measures in this annual report on form 10-k can provide a useful measure for period-to-period comparisons of our core business , provide transparency and useful information to investors and others in understanding and evaluating our operating results , and enable investors to better compare our operating performance with the

