Expert Paul Mead answers your questions about PPSR
On the back of CreditorWatch’s webinar, PPSR and Insolvency Legislation: Reviewing Your Registrations, we received plenty of insightful questions about PPSR and how PPSRLogic can help make registrations faster and easier.
If your question hasn’t been answered below, please get in touch with us – we’ll be happy to help.
Can a service provider register on the PPSR?
You can, and should, register your service on the PPSR, just like you would on tangible goods. There are specific registration applications to deal with intangible property.
Should I only register my key debtors or my entire debtor list?
It depends on your willingness to risk not registering all your debtors. Some of your smaller debtors may seem like they pose an insignificant risk to your business, but they can add up.
Registering on the PPSR is affordable, so protecting all your security assets is recommended.
Is it necessary to have both PPSR and trade credit insurance?
It isn’t necessary to have both, but a number of trade insurers will require you to have PPSR in place to minimise losses.
The PPSR is not an insurance policy and only comes into effect when a business is insolvent.
Trade credit insurance can have a number of applications beyond insolvency events.
What is the minimum value of an interest for it to be registered?
There is no minimum value of an interest for it to be registered on the PPSR. The PPSR acts as a noticeboard to administrators of a security interest. When creating registrations, you do not detail the monetary value of what that interest is.
Can you register consumable goods or goods that have been installed and can’t be physically recovered afterwards?
Yes, you can register an interest in consumable goods. You are registering the security interest you have (the debt) in providing those goods.
Goods that have been installed may fall under the definition of fixtures which fall outside the scope of the PPSR.
Does the PPSR nullify the laws surrounding preferential payments?
Unfair preference claims relate to unsecured debts. If you have a perfected security interest on the PPSR, you are a secured creditor which overcomes one of the fundamental requirements of an unfair preference claim.
Can I customer refuse that I have a security interest in my goods? If so, what can I do about it?
Yes, a customer can refuse to allow you to register a security interest against them. If they do refuse to execute your security agreement, you cannot lawfully register a security interest in your goods in the PPSR.
In this situation, I would speak with your customer and query why they refuse to allow the registration against them.
If you liked this article, you will also love: PPSRLogic: Simplify Your PPSR Registrations