How to rank as a secured creditor in this increasingly volatile business environment

Personal Property Securities Register

In an environment that is likely to have a heightened level of volatility, SMEs need to consider using PPSR’s and how that affects your business operations and what implications this has on selling your business and impacting on settlement. The Personal Property Securities Register or PPSR, is an official government register where one registers their security interest held in personal property.

In what can only become a highly volatile trading environment post March, understanding and using PPSR should be included in your day-to-day business repertoire. Business credit, Australia-wide, equates to a lending facility that would have resource classified as Australia’s fifth-largest bank. With that amount of lending through 30 or 60 day trading accounts there is an enormous amount of potential liability.

What can you do?

Registering a security interest over the goods or services allows you to protect assets in the event there is a default. Chiefly this security interest is to protect your business from the insolvency of your customers. The retention of title that the registration of a security interest entitles you will allow you to; recover unpaid goods, claim an interest in the product in which of goods have been added or act as a defence to having received an unfair preference.

The use of PPSR’s are becoming more prolific as people weigh up the small cost of registration against the potential loss of stock and services.
We certainly advocate that this strategy be employed within your business given the small cost in the vicinity of seven dollars, may save your businesses cash flow being negatively impacted and potentially pushing you towards an insolvency.

On the other side of this equation, it’s safe to say that your business may very well have a myriad of PPSR’s registered against it. In one particular instance this year, we at GMO, were settling a business that had hired equipment on a regular basis from a known national brand and this business had taken out PPSR’s to secure their interest in the plant and equipment that they had hired. This was all well and good, however, the branch that had taken out the security interest had been closed down.
In the complication of having these security interests cleared during settlement, it became incredibly protracted and ultimately ended up in a delayed settlement.

Acquiring a PPSR report to provide you with comprehensive breakdown of all the security interests that have been taken out against your company is a housekeeping job that should be scheduled into your operations throughout the year.


  • The disclosers are willing to disclose such information to the recipient subject to their acceptance of the following conditions:
    1. The recipient shall treat all information received from the discloser as confidential and shall ensure that all such information remains confidential and shall not use any such information in any way other than for the specific purpose aforesaid. The recipient acknowledges that all conditions subsequent in this disclosure apply to the recipient and any associates of the recipient be they partners, co‐directors, trustees, holders of shares or officersin entity(s) the recipient has interest in.
    2. The obligations of paragraph 1 shall not extend to any such information which is in the public domain, or which hereafter becomes part of the public domain otherwise than as a result of any unauthorised activity or omission of the recipient, or which is already in the possession of the recipient and was not derived from the disclosers.
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    4. The obligations set forth in paragraph 1, 2 and 3 shall terminate 12 months from the date of this agreement or upon the disclosers and the recipients entering into an agreement whichever event occursfirst.
    5. The recipient shall obtain no rights of any kind to such information other than for the specific purpose stated in this agreement.
    6. The receiving party will not utilise any material made available to improve, construct or change another business, in such a way as to allow that business to compete with the business being discussed.
    7. The recipient understands that the information has been compiled by GMO from details provided by the Vendor. Prospective purchasers should be aware that it is not intended that any projections or this information be treated as a representation, warranty or promise by GMO or its representatives, as to the correctness of the information, or that all relevant information is contained in the information provided.
    8. The recipient acknowledges that they will not act on information provided without first seeking independent financial and legal advice.
    9. The recipient hereby agrees to declare any beneficial interest in any business that could currently be interpreted as being in competition with the subject business.
    10. The recipient agrees to return all documents supplied within 50 days of receipt (and any copies) should they decide not to proceed. The recipient further agrees to destroy any electronic information supplied by the Seller or GMO and to instruct their professional advisors to also destroy any information passed on by the Seller, the recipient or from GMO.
    11. The recipient acknowledges they are precluded from physically visiting the premises of the business or talking to any client, supplier or employee of the business without the permission of the discloser.
    The recipient/s hereby accepts the above conditions as binding on them in respect of the information referred to.
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