What Is File Classification?
File classification is used to sort documents automatically based on their type and purpose. In MCA and small business lending, this matters because packets include many different files: applications, bank statements, IDs, and supporting paperwork.
Each requires different checks and carries different weight in decision-making.
File classification typically appears during submission intake when documents are first received. Operators use it to make sure bank statements are treated differently from identity documents, and supporting files are routed to the right place.
Without classification, teams risk misplacing documents or applying the wrong validations.
How Does File Classification Work?
At a general level, file classification follows a clear sequence.
- Input: A broker or ISO submits a packet with multiple file types.
- Core action: Each file is scanned and identified as a statement, ID, application, or supporting document.
- Output: Files are tagged by type so they can be processed correctly.
- Follow-on: The right checks are applied to each document type, such as scrubbing statements for NSFs or verifying ID validity.
In Heron’s workflow, file classification is automated across every submission.
- Intake: Files arrive with the submission packet and are captured by Heron.
- Scrub/Checks: Heron classifies files into categories like bank statement, application form, or ID and applies the correct scrubbing logic.
- Write-Back: Document metadata, such as type, date, and packet association, is written to the CRM.
- Next Action: Underwriters receive clean, organized packets with every file properly tagged for review.
Heron makes sure that classification happens instantly ,so no one has to open and label documents manually.
Why Is File Classification Important?
For brokers and funders, file classification is essential for both speed and accuracy. It reduces the time wasted manually sorting documents and makes sure each file undergoes the correct checks.
It also supports scale, since high-volume teams can receive thousands of pages daily. By classifying files automatically, Heron reduces clutter, eliminates misfiles, and keeps underwriting workflows smooth.
For brokers and funders, file classification reduces errors and makes packet review faster.
Common Use Cases
File classification is applied to almost every incoming packet.
- Sorting bank statements from IDs to apply different scrubbing checks.
- Identifying duplicate files when the same document is sent multiple times.
- Detecting missing document types, such as absent IDs, in a packet.
- Organizing attachments so underwriters receive a complete, labeled set.
- Writing file type data into the CRM so records stay consistent.
FAQs About File Classification
How does file classification reduce manual work for brokers and funders?
Heron automatically tags each file by type, so staff do not need to open every document to figure out what it is. This saves hours of manual review and keeps packets consistent.
What happens if a file cannot be classified?
If Heron cannot identify a document type, it flags the file for review. The item is routed into an exception queue so staff can correct it, but the rest of the packet continues through the workflow.
What outputs should teams expect from file classification?
Teams receive structured CRM data showing each document’s type, date, and status. This makes sure underwriters always know what files are included and what checks have already been applied.