Organisations, particularly small businesses, can derive significant benefits from using the Personal Property Securities Register (PPSR) in Australia and New Zealand. Here are key points highlighting why an organisation should use the PPSR:
1. Protection of Security Interests
Legal Claim: Registering on the PPSR ensures that an organisation has a legal claim over its assets or property. This is crucial in the event of a customer’s insolvency.
Priority Over Unsecured Creditors: In case of insolvency, registered security interests typically have priority over unsecured creditors, enhancing the likelihood of recovering owed amounts.
2. Mitigation of Financial Risk
Reduced Losses: Using the PPSR helps businesses minimise the risk of financial loss by securing their interest over assets and equipment, thus protecting against non-payment or the insolvency of customers.
Peace of Mind: Knowing that assets and equipment are secured provides peace of mind, allowing businesses to operate with greater confidence.
3. Improved Access to Credit
Better Financing Terms: Lenders are more likely to offer favourable financing terms to businesses that have secured their interests on the PPSR, as it reduces the lender’s risk.
Enhanced Creditworthiness: A registered security interest demonstrates to lenders and investors that the business is proactive in managing and securing its assets, improving its creditworthiness.
4. Simplification of Asset Management
Clear Asset Ownership: The PPSR provides a clear record of asset ownership and security interests, simplifying asset management and reducing disputes over ownership.
Streamlined Processes: Registering and managing security interests through the PPSR can streamline administrative processes related to asset and credit management.
5. Legal Compliance
Adherence to Regulations: Using the PPSR helps businesses comply with legal requirements related to securing personal property, avoiding potential legal issues and the loss of security on the insolvency of the counterparty.
Up-to-Date Records: The PPSR maintains up-to-date records of security interests, ensuring that businesses are compliant with current laws and regulations.
7. Dispute Resolution
Clear Evidence: In disputes over asset ownership or priority of interests, a PPSR registration provides clear evidence, aiding in quicker and more effective resolution.
Legal Protection: The registration acts as a legal protection mechanism in case of disputes, ensuring that the business’s rights are upheld.
8. Business Continuity
Resilience in Insolvency: By securing assets, businesses can maintain continuity and resilience even when facing financial challenges from customers.
Asset Recovery: In case of insolvency or default, registered interests facilitate easier and faster recovery of assets, contributing to business continuity.
Conclusion
Overall, using the PPSR is a strategic decision that offers legal, financial, and operational benefits to organisations. It ensures protection of assets, reduces financial risks, improves access to credit, simplifies asset management, and ensures legal compliance.
What is PPSR Cloud?
PPSR Cloud is a cloud-first secure platform to streamline the management of PPSR Registrations and Searches against the government PPSR registers across both Australia and New Zealand. Its user-friendly interface reduces the risk of errors in registrations and offers features like templated registrations, bulk actions, and clear PPSR search results. This empowers businesses of all sizes to manage their PPSR administration, including registrations and searches, saving time and ensuring they always have complete information at their fingertips.
Why PPSR Cloud?
PPSR Cloud simplifies the PPS registration and search processes to ensure your security interests are protected and safe. Managing your PPSR registrations and searches have never been simpler and all your PPSR information is kept securely in one central location.
Whilst you can perform PPSR data management via the MBIE (NZ) and AFSA (AU) websites, one transaction at a time, it is arguably not the most efficient way to do so, especially when you have to manage anything more than a handful of Registrations and/or Searches. PPSR Cloud provides a superior user experience with many additional features to streamline your PPSR data management process, saving you time and reducing risk.
In addition, PPSR Cloud will monitor your existing registrations during onboarding, and continue to do so for all your existing and new registrations, and any changes in status of grantors or debtors will be notified to you, allowing proactive action to be taken to reduce risk. Onboarding existing PPSR information is as simple as entering your existing Secured Party Group credentials with the system taking care of importing all your existing registrations.
