What Is Bank Statement Scrubbing?
Bank statement scrubbing involves parsing transaction history from submitted statements and cleaning the data for underwriting use.
In MCA and small business lending, this step is critical because funders rely on accurate cash flow analysis to decide whether a business qualifies for financing.
Bank statement scrubbing typically appears during the intake process when statements are submitted as part of an application packet. Operators use it to validate income, assess stability, and surface risks that may disqualify a deal.
How Does Bank Statement Scrubbing Work?
Bank statement scrubbing follows a sequence of checks that turn raw transaction data into structured fields.
- Page validation: Makes sure all pages of the bank statement are present and legible.
- Transaction parsing: Reads deposits, withdrawals, and balances from the statement.
- Risk flagging: Identifies NSFs, overdrafts, or signs of cash shortages.
- Debt detection: Finds recurring payments tied to external financing that indicate existing debt.
- Revenue calculation: Derives true monthly and average daily revenue from deposits.
In Heron, this process is automated and built into the scrubbing engine.
- Automated parsing: Bank statements are ingested from submissions and parsed instantly.
- Checks applied: Heron validates page completeness, scrubs transactions for NSFs, and flags repayment flows to other lenders.
- Structured outputs: Clean fields such as monthly revenue, overdraft count, and debt service obligations are written directly into the CRM.
- Ready state: Underwriters receive structured results immediately, eliminating the need to manually review dozens of pages.
Heron makes sure bank statement scrubbing happens at scale, turning hours of manual review into seconds of automated checks.
Why Is Bank Statement Scrubbing Important?
For brokers and funders, bank statement scrubbing is one of the most critical steps in underwriting. Revenue must be calculated accurately, and risk factors such as overdrafts and external debt can make or break a deal.
Without automation, teams spend 10–20 minutes per statement manually scanning transactions. By automating scrubbing, Heron reduces turnaround time, increases accuracy, and allows teams to handle many more submissions without additional staff.
Common Use Cases
Bank statement scrubbing is used across most MCA underwriting workflows.
- Calculating true monthly and average daily revenue from deposits.
- Flagging NSFs and overdrafts as early risk signals.
- Detecting recurring payments to other funders that indicate external debt.
- Checking statement continuity to confirm all required months are present.
- Writing structured financial fields into the CRM for underwriting decisions.
FAQs About Bank Statement Scrubbing
How does Heron improve bank statement scrubbing?
Heron automates parsing and validation, turning hours of manual review into seconds of processing. The system outputs structured fields like revenue, overdrafts, and debt obligations directly into the CRM.
Why is bank statement scrubbing so critical for MCA brokers and funders?
Bank statements provide the most reliable picture of a business’s cash flow. Scrubbing ensures decisions are based on accurate income and risk assessment, which prevents losses from funding weak deals.
What outputs should teams expect from bank statement scrubbing?
Heron delivers fields such as total monthly deposits, average daily balances, overdraft counts, and repayment flows to other lenders. These structured outputs let underwriters make quick, data-driven decisions.