PPSR Reminder

I had a conversation with a business owner today that's, unfortunately, all to common.

This business wasn't registering their security interests (credit agreements) on the Personal Property Securities Register (PPSR). In fact they didn't even know what the PPSR was!

As a result they'd gotten badly burned when a client had gone into Liquidation, with a significant quantity of their stock that had not been paid for. If this business had a Purchase Money Security Interest (PMSI) registered, they would have had a good chance of getting all that stock back, but without the registration, they were out of luck and got lumped into with all the other unsecured creditors.

Despite the Personal Property Security Act commencing over a decade ago, I still regularly see businesses that do not have their securities properly documented and registered, often costing them large amounts of money.

So if you are chatting to any business owners over the pre-christmas period (especially if you're an advisor), maybe take a few minutes to check in and make sure they have all their security interests they may have properly documented and registered.

They'll thank you if something does go wrong!