The collection of money from clients is proving as big a problem as ever, recruiters heard at a seminar this month.

The average time to collect a debt is 45 days, according to data gathered by the Credit Research Management Centre, part of Leeds University. Meanwhile, weekly agency workers expect to be paid within a week. This leaves agencies with a cashflow problem.

Eddie Stanley, sales director at financial software firm Topaz, said a company with an annual turnover of £60m could save £435,484 in interest just by cutting the number of debtor days to 40 from 45.

Thirty-one percent of companies spend less than £500 a year on credit agency reports, recruiters were told. Only 17% impose interest penalties for late payment.

Stanley said there were simple steps an agency could take to reduce the length of time clients take to pay. Some of the steps "are a bit mundane," he said. They include continuing to use credit referencing agencies, such as Dun & Bradstreet, and ICC, to check existing clients. Stanley said many companies only use such services when they first enter into a relationship with a client, so they are not alerted to changes.

Topaz recently launched a product to let firms automatically check clients' creditworthiness. Stanley also suggested more basic measures, such as ensuring invoices are sent to the correct addresses.

Sandra Purkiss, of Leicester-based Aptus Personnel, said she mitigated risks when dealing with new clients by giving them a maximum credit of only £1,000.

Users of Topaz systems include HR Go, Aptus, Hudson, Grafton and Options Group.