When should you use PPSR?

Often time, when you are exposed to a new concept, the question that always pops up is, “why should I use it?” You need to know that PPSR provides protection to your business against risk. It is a tool you can use to raise finance through your business assets and goods.
PPSR protects a business interest in the below ways:
 

When you are buying goods

Conducting a PPSR search allows you to ascertain if the goods you are planning to buy are used as a security for any obligation. Although the register will not reveal the actual value or worth of the obligation owed, it will, however, provide you information on who is claiming the obligation.
For instance, a seller may attempts to sell used goods which he still has finance owing on without informing you.  And the chance is high that the financing company will pay you an unscheduled visit and cart retrieve the goods you bought if the seller stops making payments on the loan. 
For just (The amount you charge), you can conduct a cheap PPSR check to ensure that the goods you want to buy are safe from repossession and free of financed debt.
 

When you are selling goods on consignment or retention of title

Registering your goods or assets provides searchers or buyers, the information that you have an interest to claim in the asset or goods you are selling to them on retention of title terms, or that you have entrusted it to another party to sell on your behalf. This means that the assets or goods secure the obligation or debt that a debtor owes you. In fact, registering your assets or goods protects you in situation where the customer defaults or go bankrupt.
The risk you face if you don’t register your assets or goods is that, should your customer goes bankrupt, your property might be sold to pay secured creditors first, even they have not completely paid you. And being unsecured creditor in a liquidation case, you may not recover much of what you are owed.
However, you stand the chance of being paid first if you register your assets or goods as early as possible. Registering your goods or assets on the PPSR database also protects your interest even though the assets or goods are sold, mixed or installed on other goods.
 

When hiring, leasing, or renting out goods

If the arrangement of the hiring or lease is up to a year, more than a year, or even indefinitely, the PPSR registration is for you.
Registering your assets or goods protects your interest even when they are not in your possession.
If you don’t register the goods or assets you are leasing, hiring or renting out and your customer goes bankrupt, your property may be sold to pay creditors.
 

Do you think a contract already covers you?

Relying on the title clause in your invoice or contract, which states that title of goods remain with you until they are fully paid for will not protect you on its own.
If you choose not to register your interest, your retention of title clause is not likely to count against others when circumstance demands.
You need to know that anyone who registers an interest ahead of you will be paid first if your customer defaults or go bankrupt.
 
Ensure you register your interest to in order to back up your contract.
 


Get an instant car history report. Quick and Readable Report Only For $5.99