Firms wanting to improve profits need to take control of their credit management, even if it is being done by an outside organisation.

But Derek Scott, a Worthing-based credit expert, warned against cowboy advisors operating in the field.

He said there had been an increased awareness of the importance of credit control which had led to a reduction in company failures.

He put this down to the efforts of the Institute of Credit Management (ICM) with its training and education programme, coupled with the work of the UK's network of enterprise centres which train owners of small businesses in most aspects of running companies.

Credit management is now much higher on the list of priorities for business success, according to ICM.

Mr Scott, an ICM member of and lecturer and writer on credit control, said the downside to the added awareness had been an increase in the number of service organisations entering the profession.

He said: "Many of these have neither the expertise nor the experience to advise individuals or companies about credit or debtor problems.

"We are bombarded with performance claims by some of these organisations but things like average debt-collecting period statistics are meaningless.

"There is a vast difference between consumer and trade credit.

"In the latter, in construction alone, there will be several different acceptable levels of performance depending on the area of the industry the company is involved in."

Credit management service companies have always played an important part in assisting businesses but Mr Scott warned anyone using their services to ensure they choose the right organisation for their business and monitor its performance and costs.

Mr Scott said: "For credit assessments you need quick quality information, not a computer system capable of running the space programme. Reports must suit a businesses specific needs.

"Business owners should satisfy themselves of the competence, training and background of the experts they engage.

"If they need legal assistance, they must find a specialist with knowledge of their field of business.

"From my own experience I've found there are too many cowboys in the debt-collection field. My advice is always use a professional firm and ask to visit their offices to see how your accounts will be progressed. Many companies have just a set routine which rarely varies to suit individuals.

"People shouldn't be influenced by claims that they act for major companies. It is more important the experts understand the nature of your business."

Mr Scott, who is credit and debtor consultant to West Sussex Area Enterprise Centre and a writer for Credit Management Magazine, said a fear of outside interference in their business was a major worry to business owners.

He said: "Companies should be as protective of their credit control as they are of their sales operations."

The ICM can be contacted on 01780 722900. West Sussex Area Enterprise Centre is on 01903 228626.