POOR credit control systems are making life needlessly difficult for Kent entrepreneurs and could even be putting their businesses at risk.

That is the warning from Business Link Kent (BLK) in the wake of new figures showing rising levels of bankruptcy and the hassle businesses face in getting paid.

According to the Department of Trade and Industry, in the second quarter of the year individual insolvencies rose 36.8 per cent to 15,394, the highest level since records began.

Company liquidations rose 12.5 per cent on the previous quarter to 3,342, a rise of six per cent on the year.

The most recent Kent Business Barometer survey revealed that chasing the non-payment or late payment of bills is the single greatest headache affecting the county’s business leaders, with 57 per cent saying they find it fairly-to-very stressful.

In the construction industry the figure rose to 67 per cent and reached a peak of 72 per cent for those in manufacturing.

Ian Netherton, BLK's finance packaging manager, said: "It is crucial for Kent businesses to have robust credit control systems in place.

"Money is no use to a business until it is in the bank and it is poor cashflow that is the biggest single killer of otherwise viable businesses."

BLK recommends that companies should have at least some of the following credit control procedures:

1) Carry out credit checks on new customers before supplying them with good and services;

2) Be clear right from the start about your terms of business;

3) Make sure the goods and services delivered are as specified – so there’s no excuse to query the invoice;

4) Send your invoice promptly and check it has arrived;

5) Keep an aged debtors ledger so you can see at a glance who owes how much and from when;

6) Two or three days before an invoice is due to be paid, phone to make sure that payment is on the cheque run;

7) As soon as payment is due, send a statement;

8) After a fortnight, telephone or send a letter. If necessary follow this with a visit;

9) Consider charging interest on the late sum – as allowed under the Late Payment of Commercial Debts (Interest) Act 1998.

Mr Netherton added: "Once the system is in place it is relatively easy to keep on top of your debts.

"The benefits will include being able to reduce your borrowing, less stress and a more dependable supply of cash.

"And you will be at the front of the queue when your customer is paying his bills – because it is the businesses that chase for payment that get paid first."