4 things to remember when registering on the PPSR
Addressing the task of renewing your PPS registrations is a great time to ensure that your registrations are correct. Incorrect registrations could mean loss of your security interests.https://www.edxppsr.com.au/contact
With this in mind, here are four things businesses need to consider when registering their property on the PPSR, providing some insight which could make the process easier.
1. Think about the benefits of registering on the PPSR
Businesses need to carefully weigh up the costs and benefits of registering on the PPSR and what this could mean for their day-to-day operations. There is a cost associated with registering your interests in goods or personal property, which will vary depending upon how long you want to secure your interest in that item. However, in many cases the benefits outweigh the negatives. If items are not registered and one of your customers becomes insolvent, an insolvency practitioner is under no obligation to return that property to you, regardless of cost or volume.
Ownership means little now; a registered security interest is required. Clearly, failure to register property can leave businesses in real financial difficulty and at risk of insolvency themselves should they be unable to retrieve their goods.
2. Put time into getting your registrations right
It’s crucial that businesses ensure they are inputting the correct data when registering their goods or property, as registrations can be completely invalid if even small details are incorrect. We understand how long it can take to input potentially thousands of registrations, so it is worth making sure they are accurate when submitted.
Make sure that every detail on a registration is correct as there is no leeway for some missing or incorrect critical pieces of information. For example, if the grantor identification is incorrect because the supplier has defined their customer as a “business” rather than a “company”, this will invalidate the registration.
3. Check your contracts and T&Cs
It is worth checking whether you need to update your contracts and terms and conditions in relation to the PPSR. Business should assess whether they need to update sales contracts, invoices and terms and conditions of sale, and credit application forms should clearly state a business’s security interest over goods sold on credit.
4. Think about how your business will actually do its PPS registrations
If you do decide to register your security interests on the PPSR, it’s important to set up your business processes and systems beforehand. This is where a credit risk adviser can come in handy, especially if you’re an SME. We know that as an SME, it’s not always financially practical to take on a full-time credit manager. However, if you are unsure of where to start or how to register, seeking independent advice from a PPSR specialist, such as EDX from Equifax, is the best solution.
Obtaining advice from a PPSR specialist early can significantly advantage your business. PPSR specialists can help you understand your PPSR requirements, initiate the processes which relate to your business and enable you to manage your interests. By addressing the existing registrations sooner rather than later, businesses can position themselves to successfully manage the potentially thousands of renewals, prior to the January 2019 deadline.
For purpose-fit guidance and exceptional support in validating, updating and renewing PPS registrations, contact our PPSR specialists at EDX by Equifax. With 40 years of combined experience in insolvency and credit management, they make it their mission to help businesses like yours use the PPSR to insulate against risk, including negotiating with insolvency practitioners to protect your rights as a creditor.
Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser.
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