Standard Financial Statement Tools and how debt recovery partners use this

Debt recovery is about much more than just collecting money; it’s about building trust and finding the best path forward for individuals in financial difficulty.

One of the most effective tools used in this process is the Standard Financial Statement (SFS).

The SFS is a streamlined document that provides a compliant and standard process to capture an individual’s financial situation, ensuring clarity, fairness, and consistency in debt recovery conversations.

Here’s how debt recovery firms are using it to improve outcomes for customers and clients:

Understanding the Full Financial Picture:

The SFS collects detailed income and expenditure information, allowing firms to assess a customer’s affordability accurately. With this data, firms can create tailored repayment plans that are sustainable for the individual.

Ensuring Transparency and Fairness:

Using a standardised tool means that everyone – from the customer to the creditor – is on the same page. This transparency helps build trust and shows customers that the firm is working with them, not against them.

Complying with Regulatory Standards:

For firms, the SFS simplifies compliance with industry regulations, ensuring they meet the required standards when assessing repayment capacity and considering customer vulnerability.

Driving Positive Outcomes:

By utilising the SFS, debt recovery firms can improve their engagement rates, leading to better debt resolution outcomes. Customers are more likely to stick to plans that they understand and agree to, reducing delinquency and improving long-term financial stability.

The Standard Financial Statement isn’t just a form; it’s a framework for more ethical and effective debt recovery. When used correctly, it becomes a tool for empathy, trust, and shared success. At Controlaccount, we recognise the value of the SFS for improving outcomes for our customers and clients. Quality and regulatory compliance are fundamental to everything we do, and we always adhere to best practice to provide the best service possible. If you'd like to find out more, speak to one of our team today.