Funding packets contain a mix of essential documents, bank statements, merchant applications, tax returns, underwriting notes, and decision emails. When these arrive through inboxes or portals, they often come unstructured and unlabeled.
Manually sorting and identifying each attachment slows down deal flow, causes confusion, and increases error rates.
Heron automates classification for funding packets, instantly identifying and tagging each document type within incoming submissions.
The system uses document intelligence to determine whether a file is a bank statement, P&L, tax return, or identity document, then groups them under the correct packet and prepares them for scrubbing and validation.
This turns messy email attachments into a structured, ready-to-underwrite dataset.
Use Cases
- Identify document types automatically: Heron recognizes key documents such as bank statements, P&Ls, tax returns, voided checks, and decision forms.
- Sort attachments into structured packets: Files are organized into standardized categories for underwriting workflows.
- Handle multi-source submissions: When packets arrive over multiple emails or uploads, Heron classifies and merges them under one deal.
- Flag unrecognized or mislabeled files: The system marks unclear or corrupt documents for quick human review.
- Apply standardized naming conventions: Files are renamed based on document type, merchant, and submission ID.
- Trigger downstream automation: Once classified, packets move automatically into scrubbing, validation, or write-back workflows.
Operational Impact
Classification serves as the foundation for accurate and fast underwriting.
- Speed: Submissions are organized in seconds, not hours.
- Accuracy: Each file is recognized and stored in the right folder or deal record.
- Scalability: Hundreds of packets can be processed daily without added staff.
- Visibility: Underwriters view clean, standardized packets rather than unstructured email threads.
- Efficiency: Teams eliminate repetitive naming and sorting tasks.
Heron’s classification engine gives funders instant clarity on what’s been received and what’s missing before underwriting begins.
Automation and Classification Logic
Heron uses a layered document-intelligence model designed specifically for MCA and small-business funding workflows.
- Text extraction: The AI reads headers, totals, and patterns to detect document types.
- Layout recognition: Common templates, like bank statements or ACORD-like financial summaries, are detected even when formatting varies.
- File-type rules: Heron identifies key features such as table structures, tax-year fields, or routing/account number patterns.
- Cross-reference verification: Merchant names, business names, and claim IDs are compared across documents for consistency.
- Confidence scoring: Each file receives a confidence rating; uncertain cases are routed for human-in-the-loop review.
- Automatic grouping: Documents belonging to the same deal are linked by metadata like merchant name, ISO ID, or submission timestamp.
This logic ensures that classification is not only fast but also reliable across varying document formats.
Data Governance and Compliance
Heron’s classification process aligns with industry-level security and transparency standards.
- SOC 2–aligned infrastructure: All data processed is encrypted in transit and at rest.
- Access permissions: Only authorized users can modify classified results.
- Audit logging: Every classification decision is timestamped and traceable.
- Redaction options: Personally identifiable information (PII) can be redacted before external sharing.
- Retention alignment: Classified packets are stored based on each organization’s compliance policies.
This ensures accuracy without compromising security or privacy.
Cross-Team Integration
Classification connects seamlessly to every other part of the Heron automation loop.
- Intake integration: As funding packets are captured, Heron classifies each file before any manual review.
- Scrubbing and validation: Classified documents move directly to completeness and accuracy checks.
- CRM synchronization: File classifications update CRM records automatically, keeping data consistent across systems.
- Review visibility: Underwriters can see exactly what’s included in each packet without digging through folders.
- Exception routing: Low-confidence classifications appear in review dashboards for quick correction.
By structuring document intake at the source, Heron creates a frictionless workflow from submission to funding.
Business Outcomes
- Reduced turnaround time: Average packet preparation drops from 30 minutes to under 2.
- Improved data accuracy: Misfiled documents are reduced by more than 90%.
- Higher deal throughput: Teams handle 2–3× more funding packets per day.
- Lower rework rates: Underwriters receive only complete, organized submissions.
- Better broker experience: Fewer back-and-forths caused by missing or misnamed files.
Heron’s classification process makes funding operations faster, cleaner, and far more scalable.
Benefits of Using Heron for Classifying Funding Packets
- Speed: Organizes unstructured submissions into standardized formats instantly.
- Accuracy: Detects and classifies document types with high precision.
- Scalability: Handles spikes in submissions without slowing down operations.
- Compliance: Maintains full audit logs and access control for all actions.
- Consistency: Every packet follows the same logical structure for downstream review.
Heron’s automated classification builds the foundation for reliable, high-speed funding decisions.
FAQs About Classify for Funding Packets
How does Heron classify documents in a funding packet?
Heron analyzes each document’s text, structure, and metadata to determine its type, such as a bank statement, tax return, or voided check, and assigns it to the right category within the packet.
What happens if Heron cannot identify a document type?
When a file doesn’t meet confidence thresholds, it’s flagged for review. Once confirmed, the classification model learns from the correction and improves over time.
Can Heron process multi-email submissions?
Yes. Heron automatically detects when related documents belong to the same funding packet and merges them using metadata like merchant name or submission ID.
How does classification improve downstream workflows?
Accurate classification ensures that scrubbing, validation, and write-back steps target the right documents, reducing rework and manual checks.
Is Heron’s classification process secure?
Absolutely. Classification happens within Heron’s SOC 2–compliant environment, with encrypted storage, restricted access, and full audit logging for every document processed.
