As a wholesaler, your investments and trading need to come with a high degree of financial safety and security.

Any credit risk should be mitigated from the outset and a key tool for wholesalers is the Australian Government’s Personal Property Securities Register (PPSR).

The PPSR was established in 2012 when the Personal Property Securities Act 2009 combined a complex array of laws and registers into one entity. Its purpose was to simplify more than 35 separate registers Australia-wide into one easy-to-use system, reducing risk for secured parties.

The PPSR plays a key role in credit risk management and makes the whole process more accessible for businesses large and small.

For wholesalers, the PPSR is most applicable when “selling goods on terms to retailers for on-sale to the public or as materials for use or installation in manufacturing, agriculture or any other process.”

The PPSR is crucial for buyers and sellers in the wholesale industry:

• Buyers can search the PPSR to find if the goods they’re interested in are free from existing debt or if they’re currently under finance. Anyone can conduct a PPSR search to learn if certain goods are covered by a security interest, and how this might impact their purchase of the asset. Gaining this information can remove the risk of repossession if the seller goes broke and can’t pay their dues.
• Sellers can register their goods on the PPSR to ensure they are first in line to recover their dues in the event that the buyer goes broke and can’t pay. For example, a grain broker went broke and couldn’t repay its grain suppliers. Registered suppliers were able to recover 90% of their debt owing from the crop, while unregistered suppliers received around 10%.

Another benefit of the PPSR is that it adds a layer of transparency to wholesale trade that was previously rather murky. The register also makes it easier for a company to use its assets to secure lending, as there is less risk of the transaction resulting in bad debt for either party.

Wholesalers can buy and sell with confidence when they register their assets on the PPSR, as this helps them mitigate risks associated with a trading partner’s insolvency.

Getting the most out of the PPSR

So, if the PPSR is so beneficial, why aren’t more people using it?

Many businesses avoid registering on the PPSR because of its complex process and a lack of understanding about its importance.

CreditorWatch’s PPSRLogic tool helps eliminate the complexity and confusion.  

PPSRLogic is a platform created to simplify the PPSR experience, saving businesses time and improving the accuracy of their registrations.

The tool allows you to import registrations and update missing or incorrect information like ABNs, ACNs, grantor details, and addresses. This is crucial as a single mistake could render your entire registration void.

This can all be navigated on a single platform and registrations can be completed on just one page. It can be also integrated with CreditorWatch’s online credit application tool ApplyEasy, ensuring you’re protecting your interests right from the start of each relationship.  

CreditorWatch works with some of Australia’s largest wholesalers to protect their assets and mitigate credit risks. Contact us now for a free personalised demo of PPSRLogic.