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 modernising and simplifying the law on borrowing against moveable physical and intellectual property, while creating an easier way for businesses to sell unpaid invoices to banks or other financial institutions

Tom Arthur, public finance minister, 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.”