What is PPSR?
CreditorWatch has recently launched its latest product – the ability to create and manage PPSR registrations. Did you know that PPSR is a vital component of doing business in Australia?
The PPSR (Personal Property Securities Register) came into existence in 2012 as a result of the PPSA (Personal Property Securities Act 2009). The act and register essentially protect your security interests in the event of a customer or supplier’s liquidation.
How is this different from a Retention of Title clause?
While some may think that Retention of Title clauses in supplier contracts are enough to protect your goods, they actually aren’t.
In the event of a liquidation, the administrator will review the register and prioritise assets accordingly. If you have not registered your goods on the PPSR, then you will be competing with other unregistered debtors and face the possibility of losing your collateral. If you are lucky to claim anything at all, it will be what’s leftover and it won’t be much.
Why It’s Necessary
The flow on effect of the loss of goods or money in the event of your customer or supplier’s liquidation can be a risk to your credit as well.
PPSR can provide an alternative to a nightmarish situation. It is beneficial to anyone who supplies goods on credit terms; leases, rents or hires out goods; or accepts personal property as security for outstanding debt. Your security interests will take priority and you won’t be hit as hard due to a debtor going into administration. For further peace of mind, you can choose to list your collateral on PPSR for 7 years, 25 years or indefinitely.
What are the benefits of PPSR with CreditorWatch?
CreditorWatch can assist to ensure that your entity information is accurate. One wrong detail could void your PPSR protection. Before you list your financial interest on the PPSR, CreditorWatch Datawashes can be conducted to ensure that your information is correct.
Other benefits include:
- Bulk Registration – Save time! Provide a list of ACNs and ABNs and register multiple personal property interests at once!
- Renewal Reminders – Ensure you never miss a renewal. This is useful for when securities have been registered for different terms and across different dates.
- Tools to Manage Registration – Tools will allow you to see what registrations are current as well as discharge or amend existing registrations.
- Competitive Rates – CreditorWatch prides itself on making important services like the PPSR affordable for companies of all sizes.
- Compliance and accuracy – Register, amend and renew correctly and easily.
Protect your personal property and manage your credit risks with a better way to use the PPSR.
When Should I Register?
Security interests should be registered as soon as possible! If the collateral is inventory, then goods should be registered before the debtor takes possession of the goods. If the collateral is personal property, then goods should be registered within 15 days after the day the grantor obtains possession of the goods.
January 2019 marks the seven-year mark for initial registrations when PPSR was launched. Due to an expected influx of applications, now is the perfect time to get your data sorted for renewal.
Don’t wait. Renew your current PPSR registrations or create new registrations today. Visit PPSR Logic to be launched into our search portal and select PPSR. Alternatively, contact your account manager or CreditorWatch direct to find out more.
More articles like this: