11 July 2018

A motor vehicle hire company had suffered million-dollar losses to an insolvency practitioner when they contacted EDX for help.

We discovered that although they tried to register their security interests on the PPSR, many registrations had been missed or incorrectly loaded. It was hard for them to keep track of the number of registrations, especially as they were doing it themselves in-house.

The company had no processes in place for ensuring that data was loaded to the PPSR correctly. So, if a registration was incorrect, lapsed or accidentally omitted, it was effectively a useless registration.

How did EDX assist?

We consulted with them to determine the details of their business operations. From there we discussed the best solutions for their needs.

Correcting errors on their past registrations was agreed as the next step. Next was the bulk uploading of the remainder of customers they wanted to register.

Because they performed so many registrations and discharges daily, our ESIS platform was a suitable solution to assist with reducing the amount of time they spent each day on PPSR. With the help of ESIS templates and interfaces, they now have robust systems in place to ensure that every customer is registered, and registered correctly. With ESIS reports and the ease of managing registrations, the process has become a part of their everyday hire process.

What was our advice?

Their requirements were complex, particularly the need to correct so many past registration errors. However, their previous losses to insolvency practitioners had made them a receptive audience, and they were very open to listening and applying our advice about using bulk registrations and ESIS.

How long did this process take?

Although complex and difficult to fix, the project took about six weeks from beginning to end. For most clients with less complex needs, the process takes just a couple of weeks.

What was the outcome?

Over the next six months, they had three customers go bust. Each time they were able to recover 100% of their assets successfully. They estimated that our work had saved them around $3 million in just six months.

Now they are using our ESIS software solution they feel confident they’re protected from any future losses when a customer fails.

Bottom line

Our motor vehicle hire client realised the benefits of PPSR protection far outweighed the cost of registering. The recovery from one major bad debt every 2 to 3 years pays for the cost of registration many times over.

For further information, or to speak to a PPSR specialist, simply email us . An Equifax Account Manager will be in touch with you to discuss your PPSR requirements.

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.