Fewer Australian companies are prepared to offer credit terms to their trading partners. In a sign that businesses are more risk-averse, they are favouring more secure forms of payment such as collect-on-delivery.A survey of corporate credit risk management in Australia, conducted by credit insurer Coface Australia and released yesterday, found that only 38 per cent of businesses offered credit terms to trade buyers, compared with 55 per cent in 2010 and 57 per cent in 2009.Companies have become more risk-averse in their funding policies, despite reporting that increased competition was one of their biggest concerns.Coface Australia's general manager, Chris Double said in a statement: "Companies find themselves in something of a catch-22. Many of them are concerned about the increased risk of extending credit terms to customers just to keep pace with the competition."Australian businesses need to provide more compelling payment terms or risk losing customers to overseas suppliers."Coface estimates that only about five to 10 per cent of Australian businesses use credit insurance to mitigate risk.