Demand for credit among Australian businesses has softened, while corporate credit managers are shortening payment terms and increasing collections activity.According to Veda's annual survey of corporate credit managers, 'Credit Management in Australia', 41 per cent of companies have an increasing demand for credit, compared with 45 per cent in last year's survey.Nineteen per cent of respondents said their demand for credit was falling, compared with 18 per cent last year.And 41 per cent said their demand for credit was unchanged, compared with 37 per cent last year.Veda found that an increasing number of credit managers were requesting shorter payment terms from customers. While the majority of credit managers said they offered payment terms of 30 days, 22 per cent offered 14 days or less.In addition, 70 per cent said they had increased their collections activity and 59 per cent said they planned to increase collections activity. Forty-one per cent said they planned to impose stricter credit criteria on customers.Overall business and economic sentiment among credit managers was up on last year. Forty-seven per cent expected business and economic conditions to have a positive impact on their businesses, compared with 35 per cent last year.Twenty-one per cent said conditions would have a negative impact on their businesses, compared with 39 per cent last year.