Businesses are failing to make use of publicly available data that could protect them from poor payers, according to figures from the Institute of Credit Management (ICM).

A survey of ICM members found that a quarter of those questioned do not use the payment performance data provided in B2B credit reference reports – despite the help it could provide in avoiding poor risk.

But nearly two thirds of businesses did not share payment performance data on their B2B clients with Credit Reference Agencies (CRAs), which the ICM says is the very information that many of them rely on to make informed credit decisions.

Philip King, chief executive of the ICM, said it was puzzling why businesses were not engaging more with CRAs.

"If you don’t know the complete financial picture of the business you are trading with, how can you correctly asses the risks involved?" he said.

He added that it was especially disappointing how few shared payment data.

"It’s the very information they complain they never have, and yet they do little to help themselves," he said.

"You would expect both positive and negative information to be passed on so other businesses can benefit from the agencies reports. Instead, it just builds up a confused picture of many businesses finances and can result in more......Click HERE to read more