Understanding PPSR

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A vital component of doing business in Australia is the PPSA (Personal Property Securities Act 2009) in which security interests are registered on the PPSR (Personal Property Securities Register). 

 

PPSR is necessary for anyone who supplies goods to other businesses on credit terms; leases, rents or hires out goods; or accepts personal property as security for outstanding debt.

 

Retention of Title clauses in supplier contacts are not enough to protect your goods. The PPSA protects your financial interest in goods in a way that if the debtor goes into administration or liquidation, you will not have to compete with unsecured creditors. 

 

A correctly registered (perfected) security interest will take priority. If you don’t register, and the debtor goes into administration, often your collateral will form part of the assets to be managed under the administrator and it is nearly impossible to claim anything at all.

 

You can choose to list your goods/assets on PPSR for 7 years, 25 years or indefinitely. It is crucial that the registration details are accurate. One wrong detail could void your protection.

 

A CreditorWatch Portfolio Health Check can help ensure your information is correct. CreditorWatch now offers PPSR Logic which offers a simpler, time-saving and cost-effective way to manage your PPS registrations.

 

Find out more about PPSR Logic here.

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