Impact of PPSR on your business
You may be subjecting your business to risk when leasing or hiring goods, buying or selling products on consignment without knowing what you are getting yourself into.
Do you buy goods that have money owing on them? Will you be able to get your money or goods back when your customers go broke?
You can’t do business without facing all these common transaction problems, but you can protect your business.
How to protect your business
There is a single, national online database known as Personal Property Securities Register (PPSR) that allows you to check if someone is claiming an interest against an asset or good you are interested in.
You can also register your property or goods, to enable others to know if you have reserved an interest in the goods they are buying from you. This gives you the right to get your goods or their value back when your customer defaults or go broke.
Now that you know you can protect your interest by making your personal property available on the PPSR register, you need to know that personal property is a legal term that does not include such properties like land, buildings or fixtures.
What are those properties that can be registered with PPSR?
- Stock in trade, equipment or artworks
- Crops, cows and other livestock
- Cars, aircrafts or boats
- Intangible properties, such as copyright, trade secret, patents, debts and bank accounts, and licenses.
- Financial instruments like shares, debentures, cash and cheques.
- Other goods that are not land, buildings or furniture, whether new or second-hand
Register your property with The Australian Financial Security Authority (AFSA), get your PPSR certificate and be rest assured that you can always recover supposed irrecoverable debts and retain the title on goods whose buyer defaults payment.
You can also do a PPSR check on the personal property you are interested in purchasing, to determine if nobody is claiming an interest on it.