Small firms help

Reform closer on finance from ‘moveable assets’

Stuart McMillan: modernising the law

Reforms that make it easier for small firms and sole traders to raise finance using moveable property – such as cars and machinery – have moved a step closer.

To protect consumers, the Scottish Parliament’s Delegated Powers and Law Reform Committee recommends that consumers should be excluded from the parts of the Moveable Transactions (Scotland) Bill that would enable them to take out loans on moveable property.

The Committee asks the Scottish Government to consider how this can be done, without impacting on sole traders and early start-ups, who stand to benefit from the reforms.

The Bill also stated that there would be a £1,000 threshold on the minimum value of assets that could be pledged to raise finance.

If consumers are not excluded from this part of the Bill, the Committee would like to see this figure raised to at least £3,000 when the Bill returns to Parliament for further consideration.

Stuart McMillan, convener of the Delegated Powers and Law Reform Committee, said: “The evidence our Committee has heard has demonstrated that this legislation, which will modernise Scots Law and help Scottish businesses.

“It was apparent that Scottish businesses have had to implement expensive work-arounds for some finance options. However, this bill will make Scotland competitive once again with this finance option.”

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