What Is an Abandonment Rate?
An abandonment rate refers to the proportion of deal packets that never make it past intake or early review because they are incomplete, missing documents, or delayed for too long.
In MCA and small business lending, this often happens when brokers fail to send missing statement pages, applicants stop responding to stip requests, or deals linger in queues until they expire.
This measure is commonly used to evaluate pipeline efficiency. Operators track it to understand how much potential deal volume is wasted and to monitor whether workflow improvements are reducing losses.
How Does an Abandonment Rate Work?
An abandonment rate is measured by comparing the number of abandoned submissions to the total number received.
- Submission logging: Each new packet or application is recorded at intake.
- Tracking progress: Submissions are monitored to see whether they move through scrubbing, underwriting, and decision steps.
- Abandonment triggers: A deal is considered abandoned if it stalls due to missing documents, lack of broker response, or expiration.
- Rate calculation: Abandoned submissions are divided by total submissions to produce a percentage.
In Heron, the abandonment rate drops because missing-info automation prevents stalls.
- Automated detection: Incomplete packets are flagged immediately during scrubbing.
- Missing-info requests: Prebuilt templates request specific documents from brokers with clear guidance.
- One-click resubmission: Brokers resend corrected packets easily, without rebuilding the submission.
- Next action: Submissions re-enter the workflow quickly, keeping deals alive instead of lost.
This reduces wasted volume and improves broker satisfaction.
Why Is the Abandonment Rate Important?
For brokers and funders, the abandonment rate is important because every abandoned deal represents lost revenue and wasted effort. High abandonment rates frustrate brokers, reduce close rates, and make pipelines less predictable.
Heron lowers abandonment by keeping communication fast and precise. Brokers receive clear, automated requests and can fix submissions with minimal effort, preventing deals from falling out of the process.
Common Use Cases
The abandonment rate is applied in pipeline health and performance analysis.
- Measuring how many deals stall due to incomplete packets.
- Identifying brokers with high abandonment percentages.
- Tracking the impact of missing-doc automation on deal completion.
- Comparing abandonment rates before and after workflow improvements.
- Using abandonment trends to improve broker training and submission quality.
FAQs About Abandonment Rate
How does Heron reduce the abandonment rate?
Heron automates missing-doc detection and sends clear requests with one-click resubmission options, which keeps brokers engaged and packets moving forward.
Why is the abandonment rate valuable to track for MCA brokers and funders?
It reveals how much deal flow is being lost to incomplete or stalled submissions. Lowering this rate directly increases conversion and funding volume.
What outputs should teams expect from tracking abandonment rate?
Teams gain a percentage showing how many submissions were abandoned versus completed, along with trends that demonstrate improvements after automation.