Scottish Government announces new measures to support smaller businesses

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LEGISLATION to support smaller businesses to raise finance to help them maintain income and address rising business costs has been published by the Scottish Government.

The moveable transactions (Scotland) bill will look to give new opportunities to small and medium-sized enterprises to raise finance by securing funds against ‘largely untapped’ assets like vehicles and plant and machinery.

It proposes the modernisation and simplification of the law on borrowing against moveable physical and intellectual property, as well as 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.”