Credit management experts have launched a new Bradford-based operation to help firms tackle late payment and bad debts.

They claim it is the most powerful system yet for checking on and taking action against late or non-payers who are the scourge of many firms, particularly smaller ones without the resources to chase them up.

According to a leading specialist law firm, the level of unpaid debts soared by 40 per cent between the end of last year and the first quarter of 2010.

Michael Collins, director of AccountAssyst, described the state of credit control in many as “shambolic”.

The new online service is designed to be simple to use and is targeted at businesses that offer products or services to other firms. It is designed to ensure a high level of protection for companies supplying goods and services on credit.

AccountAssyst includes a Register of Outstanding Invoices, a database carrying details of unpaid or late-paid invoices.

Subscribing businesses receive e-mail alerts if one of their customers fails to pay one of their other suppliers after they have had a demand letter from a debt collection agency or solicitor.

AccountAssyst provides automated processing of new credit account applications, checks the creditworthiness of suppliers and features an early warning system to alert suppliers whenever there is a critical change to a company that they are supplying, such as a new credit rating, a County Court Judgement or new accounts being filed.

The new system is run by the Power Group, based at the Holroyd Business Centre, Carrbottom Road. The group also provides software used by solicitors and debt collection agencies to collect overdue business accounts.

Michael Collins said: “Many aspects of the AccountAssyst system are unique and may be regarded as long-overdue for businesses, with the Register of Outstanding Invoices being the most prominent. “The overall aim of the Powers Group is to change the shambolic system of credit that exists in the UK so that no longer will questionable payment practices allow a business to use its suppliers as an interest-free overdraft facility.

We hope that in taking such actions we will educate and prevent suppliers from falling into the often-fatal business trap of poor credit risk management. Ultimately, in the worst examples, this can lead to their own demise through insolvency. Morally and ethically this is wrong.” Meanwhile, leading commercial debt recovery law firm Lovetts criticised Chancellor George Osborne for failing to crack down on late payers in his emergency Budget.

Lovett’s chairman Charles Wilson, said: “More moves to name and shame late payers would affect the culture in all commercial sectors for the better and encourage good practice.

“Let’s hope the review in October will provide another opportunity for the Chancellor to consider new models and incentives to crack down on late payers.”