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The Six Big Benefits of the PPSR

If you needed a sign to register on the PPSR, here are six of them.

Four little letters, but plenty of big benefits. The Personal Property Securities Register or PPSR is essential for businesses that rent or lease goods.

We know that the PPSR can be confusing at times, so these are the top six benefits to register:

1. Protect your business against preferential payment claims

Do you know that if you accept partial payments, you’re especially susceptible to preferential payment clawback when your customers enter administration? This means that you’ll have to return money that has already been paid to you, for the administrator to redistribute to other creditors. A PPSR registration ensures that you retain the money that has already been paid to you.

2. Effectively enforce the Retention of Title clause

The PPSR enables you to collect goods that haven’t been used or sold in the event of your customer’s insolvency. Your debt will take priority over unsecured creditors. Without a registration, you may not be able to reclaim your assets even with a Retention of Title clause. This is because you’ll still be competing with all other parties with any interests in the goods, making it almost impossible to claim anything at all.

3. Entitlement over goods that have been used or sold

Even if your goods have been used or sold, you’re still entitled to the value of the goods sold. You retain rights in the goods supplied, finished goods, and proceeds of their sale.

For example, in a recent case of a grain broker who went broke, secured creditors recovered 90% of their debt owing from the crop vs unregistered suppliers who were expected to get only 10% of the amount owed.

4. Major return on investment

A single registration can save your business millions. The PPSR is the most affordable way to protect yourself against losses and bad debt as a result of customer insolvency.

Businesses not registered on the PPSR risk experience a knock-on effect when their customers go into administration and would likely lose all their assets owed.

5. Gain priority above banks

By registering your security interests as early as possible, when it comes to reclaiming goods and debt, you’ll get priority over other secured creditors (including banks) who register after you.

You will also still be protected if another secured creditor or a bank takes enforcement action against your customer. Without a PPSR registration, you’ll probably lose your assets and walk away with nothing.

6. Get additional rights and benefits

If your customer enters administration, secured creditors have the right to appoint administrators and vote at creditors meetings. Whereas unsecured creditors cannot begin, continue or enforce legal action against their debtors, unless permitted by the court or administrator.

Ready to register? Get in touch with our PPSR specialist, PPSR Paul Mead, today.

Speak to our PPSR expert



Paul Mead

Senior PPSR Consultant

With over fifteen years’ experience in financial services, and over seven years’ experience with the Personal Property Securities Register (PPSR), Paul has an abundance of knowledge assisting clients to mitigate their credit risk and minimise the risk of potential losses from insolvent clients.

As the PPSR specialist at CreditorWatch, Paul works with a wide range of businesses from small independent companies through to the largest corporates in Australia, to assist them with their PPSR requirements and ensure their processes are correct and as efficient as possible.

Outside of work, Paul enjoys running, hiking, golf and spending time with his young family.

Connect with Paul on LinkedIn or email paul.mead@creditorwatch.com.au.