A vital component of doing business in Australia is the PPSA (Personal Property Securities Act 2009) in which security interests are registered on the PPSR (Personal Property Securities Register). PPSR is necessary for anyone who supplies goods to other businesses on credit terms; leases, rents or hires out goods; or accepts personal property as security for outstanding debt.
Retention of Title clauses in supplier contacts are not enough to protect your goods. The PPSA protects your financial interest in goods in a way that if the debtor goes into administration or liquidation, you will not have to compete with unsecured creditors. A correctly registered (perfected) security interest will take priority. If you don’t register, and the debtor goes into administration, often your collateral will form part of the assets to be managed under the administrator and it is nearly impossible to claim anything at all.
You can choose to list your non-perishable goods on the PPSR for 7 years, 25 years or indefinitely. As the traditional period for registrations commenced in 2012, there has been an influx of 7-year PPSR renewals from early January 2019 and onwards. Now is the perfect time to sort out your registrations.
Another key fact about your PPS registration is the importance of ensuring the registration details are accurate. One wrong detail could void your protection. CreditorWatch Datawashes can ensure your information is correct.
CreditorWatch now offers PPSRLogic which offers a simpler, time-saving and cost-effective way to manage your PPS registrations. Visit the website.