New measures to support smaller businesses
Small and medium-sized enterprises (SMEs) and other businesses will be given new opportunities to allow them to raise finance by securing funds against largely untapped assets like vehicles, plant and machinery or whisky stores through The Moveable Transactions (Scotland) Bill.
The Moveable Transactions (Scotland) Bill was introduced in the Scottish Parliament on 25th May setting out legislation to support smaller businesses to raise finance, helping them maintain income and address rising business costs.
Moveable assets covered include machinery, vehicles, commodities or intellectual property like copyright, trademarks or patents.
The Bill proposes:
- modernising and simplifying the law on borrowing against moveable physical and intellectual property
- creating an easier way for businesses to sell unpaid invoices to banks or other financial institutions
Public Finance Minister Tom Arthur said:
“If businesses cannot fully take advantage of their assets to raise finance they might otherwise have to resort to riskier and more expensive types of borrowing.
“This Bill is vital to helping businesses and the wider economy.
“Greater access to business finance will support innovation and productivity, in line with our National Strategy for Economic Transformation.”
Read the Moveable Transactions (Scotland) Bill explanatory material here.