What you need to know about Personal Property Securities Register (PPSR).
1. What is this ‘PPSR’ everyone keeps going on about – and how do I use it?2. What is the PPSR?3. Why bother registering on the PPSR?4. So how do I register my interest on the PPSR?
1. What is this ‘PPSR’ everyone keeps going on about – and how do I use it?
The PPSR is a hot topic at the minute and the Small Business Development Corporation (SBDC) has recently sent out a number of emails containing urgent advice for small business owners on PPSR registrations. These emails were prompted by the recent closure of Western Australia’s major Ford dealership, which sadly left more than 100 small businesses out of pocket by over a million dollars.
The SBDC advised that small business owners selling goods on terms, should register their interests with the Personal Property Securities Register (PPSR) as registration provides protection in the event of client liquidation or bankruptcy.
But what is the PPSR? And how can you register?
2. What is the PPSR?
The PPSR (or PPS Register) is a single point of contact register for consumers, businesses and the finance industry.
It is used in many situations including by business operators who sell personal property on credit, consignment, or on a retention of title arrangement to register their interest in the property on the PPS Register.
3. Why bother registering on the PPSR?
Businesses can improve the way they manage credit risk by registering their security interest in the goods they supply or lease on the PPS Register. If you do not register your security interest and a debtor goes into bankruptcy or is placed into liquidation, your position will be like that of an unsecured creditor. Secured creditors will be ahead of you when payments are made or assets distributed.
4. So how do I register my interest on the PPSR?
It is a relatively easy process (if you know what you’re doing!). We do and we can help you through this process.
Please note: “This publication is for information purposes only and does not constitute legal advice. If you have any questions about this or any other commercial legal issue, please contact Helen Kay at Rise Legal.”