26 June 2018

Hundreds of thousands of registrations on the Personal Property Securities Register (PPSR) will be coming up for renewal in January 2019, making 2018 an important year to address how your business will undertake any necessary registration renewals. The renewal process can be complex and time consuming for many businesses, particularly those who don’t have a dedicated internal resource across the process.

If a registration isn’t renewed accurately, it may limit or invalidate the rights of the business to get the goods back or be paid. In this article, we provide insight into how to ensure all of your PPS registrations would pass a ‘health check’ when renewed.

Making sure your existing PPS registrations are valid

Businesses need to consider a number of variables for every registration they complete, such as collateral  class, descriptions and grantor identification. This can be a time consuming,  daunting process for companies lacking PPSR knowledge.

Imagine, therefore, how frustrating it would be to go through the entire registration process to find that, despite all your efforts, some registrations are not valid. This is a likely scenario for businesses that don’t take the vital pre-registration step of ensuring their PPS registration data is accurate and up to date. It’s been many years since businesses first utilised the PPSR to register their security interests and possibly the same amount of time since their customer data was checked. In many cases, it’s likely that some of the original information used in these PPS registrations has changed over the course of the last six years. It could also be that a customer has gone into external administration in the past six years without the supplier realising.

Renewing invalid PPS registrations is simply a waste of time, effort and money, but renewing accurate registrations is worth its weight. Determining whether corrections are required at the same time you renew is the best way to ensure that your data is accurate and registrations valid.

What can businesses do to make sure their customer information is accurate?

Often, businesses don’t know that their once good customer information has become outdated. It takes a lot of time and manpower to keep this information up-to-date. In order to start renewing PPS registrations from a position of accurate data, businesses need to update their customer information against a ‘sources of truth’ like ASIC and Equifax.

For businesses that don’t have the resources to update their own data, it’s recommended to use a professional service (such as EDX) to review and understand the issues in their existing customer book, clean and validate the data, and then renew PPS registrations in bulk. Businesses should also put in place an effective system to manage their portfolio of PPS registrations going forward.

With the right help, businesses can navigate the pitfalls of renewing PPS registrations safely and ensure their assets and interests will remain secure in the face of insolvency or other adverse events.

Email us to organise a time 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.