The Leeds boss secured the services of Watt on a year-long loan earlier this week after he made six appearances in a temporary spell at the end of United's promotion-winning campaign last season.
Grayson will look to add further promising talent from the top flight to his ranks and insists lack of experience is not a concern.
"It's something we're looking at all the time," he said. "We want to improve the squad and the competition here and most of our signings have come on permanent deals so far, but loans can be useful as well.
"When we've asked the question in the past, a number of clubs said they would be delighted to lend us players because it's great for the development of their kids.
"Whether they can handle playing for Leeds might ultimately determine whether they can handle playing in the Premier League when they go back. Numerous people I've spoken to have made us top of the list of clubs where they want their young players to go out to."
Source: PA
Source: PA