Regulations which give breathing space to individuals and sole traders from their creditors have been extended to partnerships, trusts and small to medium unincorporated businesses.
The Debt Arrangement Scheme, administered by the Accountant in Bankruptcy, freezes interest, fees and charges in order to prevent debts mounting up while a scheme of repayment is agreed.
It is hoped the extension of the scheme to SMEs will help prevent unnecessary business insolvencies.
Business Minister Fergus Ewing said: “By extending this initiative to small and medium businesses and other eligible entities we are ensuring the lifeblood of Scotland’s economy receives the same protection and stops otherwise sound businesses collapsing.”
