Legislation to support smaller businesses to raise finance, helping them maintain income and address rising business costs has been published by the SNP Government.
The Moveable Transactions (Scotland) Bill will give new opportunities to small and medium-sized enterprises (SMEs) and other businesses, allowing them to raise finance by securing funds against largely untapped assets like vehicles, plant and machinery or whisky stores.
The Bill proposes to:
Modernise and simplify the law on borrowing against moveable physical and intellectual property
Create an easier way for businesses to sell unpaid invoices to banks or other financial institutions
Kenneth Gibson MSP said:
“This legislation will provide businesses across North Ayrshire and Scotland with helpful tools to use their assets to raise finance, rather than resorting to riskier and more expensive types of borrowing.
“Assets could help secure a lower cost loan, under a lender’s security called a statutory pledge. The asset would be pledged by the borrower as protection against default on loan repayment and recorded in a new Register of Statutory Pledges.
“Greater access to business finance will support innovation and productivity, in line with the SNP Government’s National Strategy for Economic Transformation, and introducing this option will create huge benefits for businesses and the wider economy.”
Moveable assets covered include machinery, vehicles, commodities or intellectual property like copyright, trademarks or patents.
Read the Moveable Transactions (Scotland) Bill and explanatory material.