What Is a Hit Rate?
A hit rate refers to the percentage of submissions that pass appetite screening checks and align with a funder’s target profile. In MCA and small business lending, appetite might mean specific industries, revenue levels, or risk tolerances that a funder accepts.
This metric typically shows up in intake and pre-underwriting workflows. Operators track it to evaluate broker quality, identify how many submissions are worth pursuing, and measure the efficiency of appetite screening rules.
How Does a Hit Rate Work?
A hit rate is calculated by dividing appetite-fit submissions by the total number received.
- Submission intake: Packets from ISOs or brokers are ingested through email, portal, or API.
- Appetite screening: Submissions are checked against eligibility criteria like industry type, revenue, or bank activity.
- Pass/fail determination: Deals either match appetite and move forward, or are kicked out.
- Rate calculation: Appetite-fit deals are divided by total deals received, producing a hit rate percentage.
In Heron, the hit rate is made visible through automation.
- Automated checks: Bank statements, IDs, and application data are scrubbed and compared to appetite rules.
- Early screening: Submissions that do not fit are flagged instantly, preventing wasted underwriting time.
- Structured outputs: Appetite-fit scores and pass/fail statuses are written back into CRM fields.
- Next action: Teams focus only on the deals that match criteria, improving efficiency and broker relationships.
This allows funders to track both deal quality and screening effectiveness in real time.
Why Is the Hit Rate Important?
For brokers and funders, the hit rate is important because underwriting time is limited. A low hit rate means too many submissions are outside appetite, creating wasted effort and broker frustration. A higher hit rate reflects strong broker alignment and faster funding cycles.
Heron improves hit rate measurement by screening automatically at intake. This ensures only appetite-fit submissions reach underwriting, while out-of-appetite deals receive quick feedback via return-to-broker messaging.
Common Use Cases
The hit rate is applied in performance monitoring and broker management.
- Measuring how often broker submissions are in appetite.
- Identifying brokers or ISOs with consistently low-quality submissions.
- Tracking the impact of appetite rules on deal flow.
- Comparing hit rates across different programs or funding products.
- Using the appetite hit rate as a KPI for operational efficiency.
FAQs About Hit Rate (In Appetite)
How does Heron help track hit rate in appetite?
Heron applies appetite checks automatically during scrubbing, then writes appetite-fit fields and scores back into CRM records.
Why is the hit rate in appetite valuable for MCA brokers and funders?
It shows whether deal flow is aligned with funder criteria, reduces wasted time, and gives brokers faster feedback when deals do not fit.
What outputs should teams expect from hit rate tracking?
Teams receive appetite-fit scores, pass/fail statuses, and CRM dashboards that display hit rate percentages over time for both internal monitoring and broker reporting.