What Is Payroll Consistency?
Payroll consistency refers to the presence of recurring deposits that match payroll patterns, such as weekly or biweekly wage payments.
In MCA and small business lending, this is viewed as a positive indicator because it shows the business is actively operating, employing staff, and maintaining regular expenses.
Payroll consistency typically appears during bank statement scrubbing, where transactions are parsed and categorized. Operators use it to confirm that payroll is being paid on schedule, which supports the view that the business is stable and ongoing.
How Does Payroll Consistency Work?
Payroll consistency is evaluated by scanning deposits and withdrawals across statements.
- Transaction parsing: Deposits are extracted and categorized by type and source.
- Pattern recognition: Recurring amounts and schedules are identified as payroll-related.
- Stability check: Consistency of timing and size is reviewed to confirm regularity.
- Signal output: A payroll consistency indicator is generated as part of the applicant profile.
In Heron, payroll consistency is surfaced automatically through scrubbing and enrichment.
- Automated parsing: Bank statements are ingested and transactions analyzed.
- Detection: Heron flags regular payroll-related deposits and highlights consistency over multiple cycles.
- Structured output: Results, such as “biweekly payroll deposits detected,” are written into CRM fields.
- Next action: Underwriters can use this stability signal alongside revenue and balance metrics to make more informed decisions.
This gives teams an immediate view of whether a business maintains predictable payroll activity.
Why Is Payroll Consistency Important?
For brokers and funders, payroll consistency is important because it signals that a business has steady operations and workforce obligations. A company that pays employees regularly is less likely to be in distress compared to one with erratic or missing payroll activity.
Heron makes payroll consistency practical by detecting and surfacing it automatically. This reduces manual analysis and strengthens underwriting decisions with a simple stability indicator.
Common Use Cases
Payroll consistency is used to support underwriting and eligibility checks.
- Confirming that applicants are actively paying employees on a recurring basis.
- Highlighting stable businesses with consistent payroll flows.
- Surfacing irregular or missing payroll activity as a potential risk signal.
- Writing payroll consistency results into CRM fields for quick underwriting review.
- Using payroll stability alongside revenue and balance data to build stronger risk profiles.
FAQs About Payroll Consistency
How does Heron detect payroll consistency?
Heron parses bank statements, identifies recurring payroll deposits, and flags their timing and frequency. Results are structured and logged directly in the CRM.
Why is payroll consistency valuable for underwriting?
It shows that the applicant is running an active business with employees, which suggests ongoing stability and responsibility. Consistent payroll is often seen as a positive factor in funding decisions.
What outputs should teams expect from payroll consistency detection?
Teams receive structured fields such as payroll frequency, regularity, and recent history, giving underwriters clear visibility into this stability signal.