Firms using serviced offices in Edinburgh could benefit if a loophole currently used by banks to exploit small companies is closed up.
The passing of the Secured Lending Reform Bill would result in businesses being treated fairly by money lenders, which would protect economic recovery and provide affordable capital to budding entrepreneurs, one organisation has argued.
John Walker, national chairman of the Federation of Small Businesses, said the bill will not cost the government any money but will prevent such enterprises being taken advantage of by banks.
"Viable small businesses have been refused loans and overdrafts and have increasingly been asked by their banks for more security," he added.
Faced with rising levels of public sector unemployment, the coalition must allow firms to start up without having to put their financial security at risk, he stated.
Earlier this week, Mr Walker advised the government to implement a Small Business Programme for Growth initiative immediately, so the health of the UK economy can be restored.
