Moveable transactions reform is intended to enable smaller businesses to use their assets as security against lower cost loans and so such reform is a welcome development, according to the Law Society of Scotland.

The Moveable Transactions (Scotland) Bill, which was introduced in the Scottish Parliament yesterday, sets out to modernise and simplify the law on borrowing against moveable physical and intellectual property and create an easier way for businesses to sell unpaid invoices to banks or other financial institutions.

Dr Jonathan Hardman, convener of the Law Society of Scotland’s Banking, Company & Insolvency Law Committee, said: “We very much support the reform of the law governing moveable transactions. We consider that reform in this important area will be key to the future success of Scotland’s corporate finance sector and its clients.

“We will consider the bill in detail and take the opportunity to comment as it progresses through the Scottish Parliament. We look forward to working with the Scottish Government to ensure we have legislation in place that creates the best environment for businesses to thrive in Scotland.”

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.”