Protecting yourself when you provide goods on credit

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What is the Personal Property Securities Register (PPSR)?

The PPSR is a real time online national register on which secured parties such as financiers and suppliers can register their security interests in personal property.

A ‘security interest’ is defined in the Personal Property Securities Act 2009 (PPSA) as an interest in personal property that secures the payment of monies or other obligation.

How can you protect yourself when you provide goods on credit?

A retention of title clause (indicating that title remains with you until goods are paid for in full) in your contract or invoice, no longer protects you on its own, your interests must be registered on the PPSR.

Making a PPSR registration shows anyone searching the register that you are claiming an interest in the goods you are selling on retention of title terms, or have consigned to someone else to sell on your behalf. This interest means the goods or assets secure the debt or obligation that someone owes you. The registration protects your interest in the goods or assets should the customer default or go broke, for example, if a receiver or liquidator is appointed to the customer.

If you intend to provide goods or services without being paid first you should consider whether you need to register your interests on the PPSR.

The best way for you to secure your interests is by registering your interests against your customer via the PPSR. This will ensure that you are counted as a secured creditor should the customer go into any form of receivership, liquidation or bankruptcy.

You can register your interests online at www.ppsr.gov.au – please note there are small fees involved.

The time at which a security interest is registered will affect your priority, so any interests should be registered as soon as the goods are no longer in your possession.

Please note that if you wish to register your interests on the PPSR, your interests must be evidenced by an agreement between you and the customer.

Questions and More Information

If you have any questions regarding personal property, providing goods on credit or PPSR, please contact our business team today, or visit the PPSR website.

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