What Is ACH Debit Mapping?
ACH debit mapping refers to analyzing electronic withdrawals that occur on a regular basis, such as repayments to lenders, rent, or subscription fees.
In MCA and small business lending, mapping these debits provides insight into whether applicants are carrying external debt or have recurring expenses that impact repayment ability.
ACH debit mapping typically appears during the scrubbing stage, when bank statements are parsed into structured fields. Operators use it to clarify where money is going, identify obligations, and flag risk patterns such as heavy repayments to other funders.
How Does ACH Debit Mapping Work?
ACH debit mapping works by parsing and labeling recurring debits within statements.
- Transaction parsing: Bank statements are scanned for ACH debit transactions.
- Pattern recognition: Regular withdrawals to the same recipient are identified and categorized.
- Obligation tagging: Each debit is labeled as debt repayment, expense, or another obligation.
- Risk signaling: Patterns that reveal stacking or unsustainable repayment loads are flagged.
In Heron, ACH debit mapping is automated as part of scrubbing.
- Automated parsing: ACH transactions are extracted from statements with no manual effort.
- Mapping engine: Heron identifies recurring debits and categorizes them by type, such as debt payments, utilities, or subscriptions.
- Structured output: Results are written into CRM fields, giving underwriters clear visibility into repayment patterns.
- Next action: Deals with risky repayment flows are flagged, while clean submissions advance to underwriting faster.
This allows underwriters to see repayment burdens instantly, without manual transaction review.
Why Is ACH Debit Mapping Important?
For brokers and funders, ACH debit mapping is critical to evaluating repayment risk. A business may look strong on revenue, but if recurring obligations consume most of its cash flow, it may still default.
Heron makes ACH debit mapping fast and consistent. By flagging repayment flows and obligations automatically, it helps teams make informed decisions at scale while cutting down turnaround time.
Common Use Cases
ACH debit mapping is applied in underwriting and policy checks.
- Detecting recurring repayments to other MCA providers or lenders.
- Identifying subscription or lease obligations that reduce cash flow.
- Tagging repayment loads that exceed appetite thresholds.
- Writing mapped debits into CRM fields for underwriter review.
- Escalating applicants with heavy repayment flows to exception queues.
FAQs About ACH Debit Mapping
How does Heron automate ACH debit mapping?
Heron parses bank statements, identifies ACH debit transactions, and categorizes them by type. These are logged as structured outputs in the CRM for underwriters.
Why is ACH debit mapping valuable for MCA brokers and funders?
It exposes repayment obligations and recurring expenses that reduce available cash flow. This helps funders avoid approving deals for applicants who cannot support additional repayment.
What outputs should teams expect from ACH debit mapping?
Teams receive CRM fields showing debit frequency, amounts, and categories, along with notes on obligations such as lender repayments or stacked advances.