Business credit demand is building, according to Veda's latest Business Credit Demand Index.Veda said the volume of business credit applications that went through its commercial bureau in the March quarter was up 2.1 per cent on the previous corresponding period, after rising 0.9 per cent in the December quarter and falling 0.8 per cent in the September quarter last year.Business loan applications were up 4.2 per cent in the March quarter and trade credit applications were up 1.9 per cent, while asset finance applications declined 0.2 per cent.Growth was concentrated in the non-mining states. Applications were weaker in Western Australia, Queensland and the Northern Territory. Business credit applications were down 6.8 per cent in Western Australia,One of the main drivers of the increase in business loan applications is the pick-up in activity in the property market. There has been a surge in commercial mortgage applications.Australian Bureau of Statistics figures released on Friday show that the performance of business credit market has been uneven, with a 2.1 per cent increase in the value of commercial finance commitments in January followed by a 2.5 per cent fall in January.As a lead indicator, the Veda index suggests that outlook for growth is positive but modest.