What Is an Irregular Deposit Pattern?
Irregular deposit pattern refers to deposits that are unusual in size, frequency, or source compared to a business’s normal activity.
In MCA and small business lending, these can include one-time lump sums, inconsistent inflows, or deposits that do not align with the business’s operating model.
These patterns typically appear during bank statement scrubbing when transactions are parsed and analyzed. Operators use them to decide whether deposits represent true operating revenue or inflated, suspicious activity.
How Does an Irregular Deposit Pattern Work?
Irregular deposit detection involves analyzing transactions across statement periods.
- Baseline review: Typical deposit sizes and frequencies are identified.
- Anomaly detection: Transactions that fall outside the normal pattern, such as sudden large sums or long gaps, are flagged.
- Contextual review: Deposits are compared against the business type to judge whether they make sense.
- Risk signaling: Suspicious deposits are flagged for review as possible misrepresentation.
In Heron, irregular deposit patterns are flagged automatically during scrubbing.
- Transaction parsing: Deposits are extracted from bank statements and structured into CRM fields.
- Pattern analysis: Heron reviews frequency, size, and regularity of deposits.
- Flag generation: Non-recurring or suspicious inflows are highlighted as potential risks.
- Structured output: Results are written into the CRM so underwriters can see which deposits require further context.
- Next action: Deals with flagged deposits may be escalated to exception review or adjusted for seasonality and context.
This reduces the need for underwriters to manually scan every transaction line.
Why Is an Irregular Deposit Pattern Important?
For brokers and funders, irregular deposit detection is crucial because deposits are the main indicator of business revenue. If deposits are inconsistent or artificially inflated, it may signal that the applicant is masking weak cash flow or misrepresenting income.
By automating this step, Heron makes sure risky deposits are never overlooked. This improves underwriting accuracy, reduces default risk, and protects funders from misleading applications.
Common Use Cases
Irregular deposit pattern detection is applied across underwriting and risk checks.
- Flagging sudden large deposits that do not match a business’s normal activity.
- Identifying long gaps between deposits in otherwise busy accounts.
- Highlighting deposits from sources unrelated to the applicant’s business model.
- Surfacing anomalies that suggest manipulation of statements.
- Writing results into CRM fields to support underwriting visibility.
FAQs About Irregular Deposit Pattern
How does Heron detect irregular deposit patterns?
Heron parses deposits from bank statements and compares them against typical size, frequency, and business context. Outliers are flagged automatically.
Why are irregular deposits a red flag in MCA underwriting?
They may represent one-time windfalls, artificial inflations, or unrelated inflows that do not reflect sustainable revenue. This raises repayment concerns.
What outputs should teams expect from irregular deposit detection?
Teams receive structured CRM fields highlighting flagged deposits, frequency anomalies, and supporting context for underwriting decisions.