What Is a Ready-to-Fund Handoff?
A ready-to-fund handoff refers to the operational transition point between underwriting preparation and actual funding.
In MCA and small business lending, this happens after bank statements, IDs, and other documents have been scrubbed, completeness has been verified, and approval stipulations have been satisfied.
It acts as a checkpoint that separates preparation from execution. Operators use ready-to-fund handoff to give funders confidence that deals entering the funding queue are complete and error-free.
How Does a Ready-to-Fund Handoff Work?
The handoff works as a final confirmation step in the workflow.
- Scrub completion: All documents have been reviewed for completeness, accuracy, and fraud risks.
- Field validation: Key data points like revenue, NSFs, and balances are parsed and confirmed.
- Status update: The CRM record is updated with a ready-to-fund status.
- Queue transfer: The deal is moved from underwriting prep into the funding workflow.
In Heron, a ready-to-fund handoff happens automatically through its automation loop.
- Structured outputs: Clean fields are written back into the CRM once scrubbing is finished.
- Condition clearance: Outstanding stipulations or conditions precedent are tracked until resolved.
- Automated status change: When everything is satisfied, Heron marks the deal as ready-to-fund in the system of record.
- Next action: The deal routes directly to the funding team, with no manual checks needed.
This creates a clean break between underwriting prep and funding execution.
Why Is a Ready-to-Fund Handoff Important?
For brokers and funders, a ready-to-fund handoff is important because uncertainty at this stage can stall or derail deals. If funding teams receive incomplete or inaccurate packets, they waste time chasing fixes instead of releasing capital.
Heron improves this stage by automating the transition. When the handoff occurs, funders know the deal is clean, complete, and funding-ready. This reduces bottlenecks and improves turnaround times.
Common Use Cases
A ready-to-fund handoff is applied across lending operations where speed and clarity are crucial.
- Marking deals in CRM as ready-to-fund after all stips are cleared.
- Moving submissions from underwriting queues into funding workflows automatically.
- Reducing manual handoff meetings or email confirmations between teams.
- Making sure funding teams only handle clean, complete deals.
- Tracking metrics on how many deals successfully reach ready-to-fund status.
FAQs About Ready-to-Fund Handoff
How does Heron automate ready-to-fund handoff?
Heron writes clean, validated fields back into the CRM and automatically updates deal status once all scrubbing and conditions are complete.
Why is a ready-to-fund handoff valuable for MCA brokers and funders?
It eliminates uncertainty about deal readiness, shortens turnaround times, and prevents incomplete packets from clogging funding pipelines.
What outputs should teams expect from a ready-to-fund handoff?
Teams receive CRM records with a clear ready-to-fund status, clean structured data, and a queue of deals that can move directly into funding.