What Is Appetite Fit Score?
Appetite fit score refers to a calculated rating that measures the degree of alignment between an applicant’s profile and a funder’s requirements.
In MCA and small business lending, this often includes criteria like average daily balance, number of overdrafts, revenue consistency, and absence of stacked advances.
The score typically shows up after scrubbing, when data has been parsed and compared against appetite rules. Operators and underwriters use it as a first-glance indicator to decide whether a deal should move straight to underwriting, a second look, or out-of-appetite rejection.
How Does the Appetite Fit Score Work?
Appetite fit scoring is generated by applying eligibility and appetite rules to scrubbed data.
- Criteria mapping: Funder rules, such as minimum balance levels, NSF thresholds, or cash flow stability, are defined.
- Data validation: Parsed fields from statements and submissions are compared against these criteria.
- Score assignment: Each rule match or failure contributes to a weighted appetite score.
- Routing decision: Higher scores flow directly to underwriting, while lower scores may be kicked out or escalated.
In Heron, appetite fit scores are produced automatically.
- Automated scrubbing: Statements, balances, and transaction patterns are ingested and structured.
- Rule application: Heron checks parsed data against appetite criteria.
- Structured outputs: Scores are written into CRM fields alongside pass/fail signals for individual criteria.
- Next action: Submissions with strong appetite fit are marked underwriting ready, while weak fits can trigger kickouts or second look workflows.
This gives underwriters instant clarity on whether deals deserve further attention.
Why Is Appetite Fit Score Important?
For brokers and funders, appetite fit scores are important because they prevent time being wasted on deals that are not a match. Without them, underwriters may spend hours reviewing packets that never had a chance to be approved.
Heron adds value by making appetite fit scoring fast and consistent. Every deal is measured against the same rules, ensuring fairness, accuracy, and efficiency in decision-making.
Common Use Cases
Appetite fit scoring is applied across intake and underwriting workflows.
- Screening submissions against minimum balance and NSF thresholds.
- Flagging applicants with external debt or stacked advances as out of appetite.
- Writing appetite fit scores into CRM records for underwriting visibility.
- Routing strong-fit deals straight to underwriting queues.
- Escalating borderline scores into second look workflows for added judgment.
FAQs About Appetite Fit Score
How does Heron calculate appetite fit scores?
Heron parses documents, applies funder-defined appetite rules, and assigns a weighted score that reflects how closely the applicant matches requirements.
Why are appetite fit scores useful in MCA underwriting?
They create a fast, objective way to separate strong-fit submissions from poor-fit ones. This saves time, enforces consistency, and reduces underwriting backlogs.
What outputs should teams expect from appetite fit scoring?
Teams receive structured CRM fields showing the score itself, pass/fail criteria results, and routing recommendations. This makes decision-making faster and more transparent.