A new law which makes it easier for Scottish businesses to borrow against their moveable assets could help unlock more cross-border investment. Partner Gavin Buchan explains why the Moveable Transactions law is an attractive change as practical details are worked out by financiers.
Aligning with the UK lending framework
The Moveable Transactions (Scotland) Act came into force on 1 April 2025, bringing Scotland’s lending legislation into alignment with the rest of the United Kingdom. The change is already generating interest among English funders and investors who recognise its potential to make cross-border transactions more straightforward.
Lenders and financial brokers south of the border are beginning to assess the practical implications of what the Act enables. It’s a welcome development that removes unnecessary complexity and aligns Scotland more closely with the wider UK framework.
While it’s a myth that lending and investing in Scotland is more difficult than in the rest of the UK, the previous rules on moveable transactions did create genuine practical challenges. The earlier regime for charging moveable assets was widely regarded as outdated and ill-suited to modern commercial needs.
Broader access to finance for Scottish businesses
The new legislation allows businesses to borrow more easily against physical - moveable - assets, such as machinery and stock. It also enables firms to raise finance against non-physical assets like shares, intellectual property, including trademarks and patents, as well as unpaid invoices.
Financial institutions in Scotland are currently working through the fine details of what the Act means in practice. In the coming weeks, the procedures that lenders will follow for finance supported by moveable assets will begin to take shape, allowing potential borrowers to begin accessing the practical benefits of the new regime.
The Act is expected to have a positive impact across a number of sectors including construction, banking and intellectual property, by enabling more efficient access to secured credit. Businesses will have more flexibility to finance operations using a wider range of assets.
It also offers particular advantages to SMEs, sole traders and partnerships, many of whom previously had limited options when seeking secured finance.
A modernised approach to support business growth
By modernising the legal framework and introducing clear processes for registering assignations and statutory pledges, the Moveable Transactions (Scotland) Act positions Scotland as a more competitive and accessible market for both domestic and international investment.
As lenders and borrowers adapt to the new regime, the Act marks a key step forward in supporting business growth and broadening the finance options available to enterprises across Scotland.
Published 12 June 2025
