Business finance and security over moveable property

Anecdotally, there has been the suggestion that there are perceived deficiencies in the Scots law concerning the ability to provide security over moveable property which impinge upon the ability of Scottish SMEs to raise loan finance. In researching this issue we looked at bank lending policy and practices concerning security; the role and views of business advisers and intermediaries; and surveyed the financing arrangements of Scottish SMEs. We found little substantive evidence to support this perceived deficiency. Neither the inability of unincorporated businesses to offer the floating charge nor the inability of Scottish SMEs to offer a non-possessory security over moveable property appear significantly to affect the ability of Scottish SMEs to access finance.