As businesses find trading conditions becoming more difficult, a Sussex finance expert says they should keep a tight reign on finances.

Too many businesses were failing to recognise the importance of professional credit management, said Derek Scott, debtor consultant to West Sussex Area Enterprise Centre.

Firms were becoming more fascinated with technology at the expense of experience when it came to accounting.

"No amount of modern business technology will change the basic actions required to enable any organisation to manage successfully one of its major assets, its debtors.

"As with stock, if a company fails to realise the importance of pro-

fessional credit management, the asset will soon become a liability."

Mr Scott has helped dozens of Sussex firms implement procedures and strategies.

He said: "Successful firms should approach accountancy as they approach any other discipline, especially sales.

"Companies sell their products or services by ensuring the customer believes they need them and a credit professional will be able to sell the benefits of their own services.

"From my experience with firms in Sussex, I've compiled a list of golden rules that many have found useful."

He recommends having a written contract, formulated by an expert, stating a firm's conditions, including payment terms and interest, because businesses could not impose terms once a contract has been signed.

He said: "My list may seem straightforward but sometimes the most obvious things are overlooked."

The rules include:

Credit check customers because prevention is better than cure.

Have specific payment terms to suit your business and agree them in writing.

Commence payment procedure prior to due date and know your customer's payment procedure.

Following up late payments should be prioritised in order of the importance of the customer to your company.

Do not neglect good payers.

Look out for problem signs like post-dated cheques, part-payments or extended payment periods.

Mr Scott said: "If customers pay late, you are giving them an interest- free loan to finance their business.

"Be positive but not aggressive and remember cash is the lifeblood of your business."