The weak demand for business credit that was highlighted in Reserve Bank and Australian Prudential Regulation Authority data this week looks likely to continue. Veda Advantage reported yesterday that business credit applications fell sharply in the March quarter.Veda's figures show a 1.1 per cent increase in business credit applications in the March quarter, compared with the same quarter last year. However, the inquiry level was down 6.2 per cent from the December quarter.Asset finance followed a similar pattern, with applications up 5.8 per cent year-on-year, but down 26 per cent from the previous quarterTrade credit applications fell 4.9 per cent compared with the March quarter last yearVeda also reported that business insolvency appointment volumes in the March quarter rose 7.2 per cent, year-on-year - the third highest annual increase on record.Business credit inquiry levels were strongest in Victoria, New South Wales and South Australia. Activity was weakest in Queensland and Western Australia.Veda's data is drawn from credit inquiries registered on its commercial database. Businesses are predominantly small- and medium-sized enterprises.