The Personal Property Securities Register is an online register of securities. By registering your security on the PPSR, you are activating your interest in that security so you can enforce it if your counterparty collapses into insolvency.
For example, you lend your friend $25k to buy a car. Your friend offers you their car as security for their repayment of the loan. You should register your security in the car otherwise, your friend’s bankruptcy would mean you’re unable to enforce your security for any outstanding money.
PPSR registrations are performed on the Government’s PPSR online portal. Unfortunately, it is not easy to use and has limited functionality, which inevitably leads to registration issues. Australia’s former Small Business Ombudsman Kate Carnell commented that “at the moment PPSR is hard to get right and easy to get wrong”.
To improve the user experience, PPSR Cloud was developed as an interface to the PPS Register, ensuring users can perform registrations in a safe, simple and accurate manner.
PPSR Cloud is not only for new registrations, its software enables the user to manage all aspects of their PPS registrations, including renewals, amendments and discharges, as well as fantastic search capabilities and plain language reporting.
Incorrectly registering your security can result in an invalid registration; in which case you lose your security on your counterparties insolvency. The severity of the outcome depends on the nature of your registration error, and there are many ways in which registration errors can occur.
Unfortunately, there is a very high rate of registration errors and the PPSR has been openly criticised for the ease in which errors can occur and the lack of internal checks.
Australia’s former Small Business Ombudsman commented on this very issue:
“Put simply – systems and regulations imposed on small businesses by the government need to be easy to get right and hard to get wrong. At the moment, PPSR is hard to get right and easy to get wrong.”
Registering your security on the PPSR is the only way to ensure your assets and securities are protected should your customer become insolvent. You will be able to enforce your claim at the very point in time you really need your security.
Registration ‘activates’ your security. Unregistered security is lost on the insolvency of your customer. Register your security or lose it.
The cost of registering your security is not expensive, especially when compared to the loss you could suffer from not registering your security.
Registration fees are $10/PPS registration, and this includes the Government charge of $6. Usually, only one registration is required per customer, covering all future transactions with the customer for 7 years. That’s $1.43/customer /year.
PPSR Cloud has several plans to suit all users of the PPS Register.
For businesses with irregular registration requirements, there is the Standard Plan with a monthly charge of $25.00.
For businesses that require regular registrations, there is the Professional Plan with a monthly charge of $75.00.
And for businesses with multiple Secured Party Groups and more sophisticated registration management needs, there is the Enterprise Plan.
There are several points in the registration process where mistakes can be made. From failure to make the correct elections, such as Collateral Type and Class to failures in describing whether your Collateral is a PMSI, is Transitional, Controlled or Subordinated, to issues with your Grantor identification, the list goes on and on.
PPSR Cloud reduces the risk of failure by using templated registrations. This ensures all your PPS registrations are performed in accordance with your PPS Policy.
Most businesses use the Government registration portal to complete PPS registrations. While it is a functional platform, it is also highly complicated with little to no checking of registration data.
PPSR Cloud provides a user interface to the Government PPSR, giving users a very different experience. PPSR Cloud utilises registration templates, ‘locking in’ your registration details and substantially reducing the risk of errors with your registrations. PPSR Cloud ensures simple, safe and accurate PPSR registrations each and every time.
PPSR Cloud has very advanced search features and plain language search results.
PPSR Cloud allows searches across all Collateral Classes. Whether you need to perform just one search, a small number or a very large number of searches, PPSR Cloud’s bulk search capabilities makes life simple, safe and accurate
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