What does PPSR mean?
The Personal Property Security Register is an online government noticeboard detailing any security interests in personal property (such as a vehicle, company assets or intellectual property).
A security interest is a right that protects a creditor – allowing them to reclaim or sell the property if the debtor fails to meet their obligations. Australian businesses can view, manage and register PPSR security interests quickly and efficiently using PPSRLogic from CreditorWatch.
What is the PPSR meaning?
Starting on January 30th, 2012, the Personal Property Security Register (PPSR) was formed to consolidate the roles of the ASIC Register of Company Charges and various state-based registries, including REVS. Managed by the Registrar of Personal Property Securities, the PPSR acts as an official national registry of security interests in personal property. The registrar’s office sits within the Australian Financial Security Authority (AFSA) department.
What is PPSR used for?
You can use the PPSR to register a new security interest on personal property and check if any security interests already exist on that collateral. Following this process means that you should be recognised as a ‘secured creditor’ in the event of debtor default or failure to meet contract obligations. This is vitally important for protecting your business assets.
A secured creditor takes priority over unsecured creditors owed in bankruptcy or external administration. Unless your right over collateral is officially registered on the PPSR, there is a chance administrators will sell off that asset to compensate all owed parties. Further, if you don’t search for already registered interests, you may mistakenly believe you are the only creditor with rights over that property.
The PPSR formalises this process. Any registration of a security interest must be registered on this official government noticeboard, or your status as a secured creditor may not be recognised. To ensure this is done correctly, consider utilising PPSRLogic from CreditorWatch to seamlessly bulk upload, manage, and view all security interests from a secure digital portal.
What is a security interest?
A security interest is a debt or obligation secured by personal property (known as collateral) as defined by the Australian Financial Security Authority (ASFA). In the event that a debtor fails to meet their obligations, such as defaulting on payments, the secured creditor can take possession of the collateral.
Items that meet the definition of “personal property” include:
- Motor vehicles
- Boats
- Planes
- Intellectual property (patents, copyrights, designs etc.)
- Bank accounts
- Shares and financial property
- Stock on hand, for manufacturing businesses
- Private commercial licences.
What can’t you register on the PPSR?
You can’t register any item on the PPSR that isn’t a security interest – there needs to be a valid agreement that outlines a security interest.
Some assets cannot be registered on the PPSR, even if a security interest exists, such as:
- Land and buildings
- Water rights
- Government-issued licences such as taxi licenses.
Who can access the PPSR?
Any Australian individual or business can use the PPSR to register or search for security interests, and it is available 24/7 unless scheduled for maintenance (or due to an unscheduled outage). You do not need an account to search the PPSR, although it will be necessary to register a security interest.
You can also form a Secured Party Group (SPG) with a PPSR account. An SPG allows one account holder to provide the details of several creditors with interest on particular collateral.
What is a PPSR certificate?
Admissible in a court or tribunal, a PPSR search certificate provides documented proof of the data returned after searching the register.
Manage all registrations securely and efficiently with PPSRLogic from CreditorWatch
For Australian businesses, navigating and searching the PPSR can be confusing and tedious. However, the registration process must be followed correctly to protect the company in the event of debtor default or insolvency.
PPSRLogic, powered by CreditorWatch, creates a seamless experience for managing and registering security interests. With the integration of ApplyEasy, you can complete registrations on one page with one click. What’s more, you can bulk upload and manage all existing registrations to consolidate them in one user-friendly platform.
PPSRLogic may allow you to simplify the registration process for your business and protect it from risky debtors and insolvent companies. Ensuring your status as a secured creditor may make all the difference if they fail to meet their obligations. To flag any suspicious trading partners ahead of time, use DebtorLogic from CreditorWatch to monitor your entire Aged Trial Balance for deteriorating payment behaviour weighed against industry averages. If critical information changes – the automated 24/7 Monitoring and Alerts system will ensure you’re the first to know.
Protect your cash flow from bad debt and risky trading partners to ensure your business thrives. Speak to our expert team today.
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PPSRLogic
Victorian PPSR Sales Specialist
Jason Sutherlin has been with CreditorWatch for over 6 years and currently holds the position of Victorian PPSR Sales Specialist.
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