What Is a Rework Rate?
A rework rate refers to the percentage of submissions that cannot move forward on the first attempt and require additional fixes.
In MCA and small business lending, this usually shows up when bank statement packets are incomplete, IDs are expired, or CRM fields were keyed incorrectly and need correction.
This metric often appears in intake and underwriting workflows. Operators use it to measure quality and identify bottlenecks that slow down decisions or add unnecessary touches.
How Does a Rework Rate Work?
Rework rate is calculated by comparing submissions that require correction against the total number processed.
- Error detection: Items are flagged when they are missing documents, fail policy checks, or contain incorrect fields.
- Correction cycle: The submission is sent back to brokers or reprocessed by staff.
- Re-entry: Corrected submissions are re-ingested into the workflow.
- Rate calculation: The number of submissions requiring rework is divided by totthe al submissions to get a percentage.
In Heron, the rework rate decreases because automation prevents common errors.
- Completeness checks: Missing pages and stale documents are flagged immediately.
- Field validation: Parsed data is mapped cleanly into CRM fields, avoiding rekey errors.
- Return-to-broker automation: Missing-info templates send precise correction requests quickly.
- Next action: Brokers resubmit corrected packets through one-click resubmission, reducing back-and-forth.
This process minimizes rework by making sure submissions are clean before they reach underwriting.
Why Is Rework Rate Important?
For brokers and funders, rework rate is important because high rework consumes staff time and slows deals. Each correction adds touches and lengthens turnaround time, which frustrates brokers and increases cost per submission.
Heron reduces rework rate by scrubbing submissions up front and only routing clean, structured data to underwriters. This not only speeds up decisions but also improves broker relationships by cutting down repeated corrections.
Common Use Cases
Rework rate is applied as a quality and efficiency metric in lending operations.
- Measuring how many submissions are sent back to brokers for missing items.
- Tracking the percentage of CRM records requiring correction after intake.
- Comparing error rates before and after automation.
- Identifying weak spots in broker submissions that drive rework.
- Reporting improvements in operational efficiency tied to reduced rework.
FAQs About Rework Rate
How does Heron reduce rework rate?
Heron automates completeness checks, parses fields accurately, and sends precise missing-doc templates, preventing errors from reaching underwriting in the first place.
Why is rework rate valuable for MCA brokers and funders?
It highlights inefficiencies in the submission process. Lowering the rate saves staff time, speeds decisions, and reduces costs associated with correcting errors.
What outputs should teams expect from tracking rework rate?
Teams gain a clear percentage that shows how many submissions require correction, along with trends that demonstrate quality improvements over time.