Business plan guidance for debt firms

Follow this guidance if you're preparing a business plan as part of your application for authorisation as a debt firm.

If you're applying for authorisation as a debt firm, you will have to complete a business plan that covers the key areas.

Some applications take longer because the business plan is not detailed enough. Our sample business plan explains the main things that your plan should include.

You should also consider the points below, which are specific to debt firms.

Debt packagers

Your business plan should explain:

  • how your firm will obtain customers (lead generators, financial promotions, website etc)
  • how your firm will conduct its assessments of affordability of its customers financial circumstances and their suitability for appropriate debt solutions
  • your debt advice process from initial contact to conclusion (the customer journey)
  • how your firm ensures that all advice given and actions taken are done with the best interests of the client – find out more about pre-contract information and advice
  • all the third party debt solution providers your firm will be introducing customers to
  • the commission/fees you will receive from third party debt solution providers
  • your firm's systems and controls and governance structure

Debt collection firms

Your business plan should explain:

  • in what UK jurisdictions your firm will be collecting debts, and who you will be collecting debts on behalf of
  • the due diligence you will undertake on the firms you will be collecting for (eg disputed debts, statute barred debts)
  • the debt collection process from initial contact to conclusion
  • details of the communications (telephone, email, letter) you will issue to debtors
  • how your firm will conduct its affordability assessments of its customers financial circumstances and their ability to meet and continue to meet any repayment plan agreed
  • how your firm will receive its income from the debt collection activities you undertake
  • your firm’s systems and controls and governance structure

Debt management firms

Your business plan should explain:

  • how your firm will obtain customers (lead generators, financial promotions, website, etc)
  • how your firm will conduct its assessments of affordability of its customers financial circumstances and their suitability for appropriate debt solutions
  • your debt advice process from initial contact to conclusion (the customer journey)
  • how your firm ensures that all advice given and actions taken are done with the best interests of the client – find out more about pre-contract information and advice
  • full details of your firm's fees and charges
  • your firm’s systems and controls and governance structure
  • how you will meet the client money rules if you are holding client money