Research from business intelligence compnay Creditsafe reveals that nearly one-in-10 companies will avoid trading with a business if it is less than a year old.

These company owners and operators are discriminating against start-up companies when looking at new customers, suppliers and business partners, preferring to trade with enterprises that have an established financial and credit history.

This cautious approach threatens the success of start-up companies which are vital for a sustained economic recovery in the UK. Furthermore, with over 364,000 new companies launching in 2009, many existing firms are overlooking a large pool of potential trading partners which could be contributing to their own business growth.

Though start-up companies have a higher rate of failure, Creditsafe says businesses need to assess potential customers, suppliers and business partners on a case by case basis to enable them to maximise the opportunities available to them while minimising their risks.

Business owners and managers are also looking for less obvious indicators as to the financial strength and stability of a potential customer or supplier.

Over half (52%) will not trade with a company that is only contactable by a mobile number. Similarly, 51% will not trade with another company if they only have a PO Box address.

A website is regarded as a powerful indicator of permanency and reliability. Around one-in-eight (12%) business owners will not trade with a company that does not have one.

”There is a danger we could choke the fledging economic recovery if companies refuse to trade with start-ups purely on the basis that they are a new company,” says David Knowles, business development director at Creditsafe.

“Businesses need to take sensible steps to establish accurately the financial health and creditworthiness of trading partners rather than relying on gut instinct and preconceptions. People have the right to be cautious when a company gives a mobile phone number only and they should also remember that having a website in itself gives little indication of a company's creditworthiness.