Introduction

A practical introduction to PPSR registrations for businesses that sell goods on credit, lease equipment or rely on retention of title terms.

Some business protection is expensive. Some is complicated. Some is both.

Then there’s the PPSR, where a registration for seven years or less currently costs $6 online.

That doesn’t mean every business should rush in and register everything. PPSR rules are technical, and mistakes can matter. But if you sell goods on credit, lease valuable equipment, hire assets, use retention of title terms or leave goods with customers, it’s worth understanding what the register does.

Some business protection is expensive. Some is complicated. Some is both.

Then there’s the PPSR, where a registration for seven years or less currently costs $6 online.

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What is the PPSR?

The Personal Property Securities Register is a national online register of security interests in personal property. Personal property is not land. It can include goods, equipment, vehicles, stock, machinery, intellectual property and other assets.

A PPSR registration can help show that someone has a security interest in personal property. For suppliers, it can improve the chance of recovering goods or their value if a customer doesn’t pay or becomes insolvent.

The one bit of gold

A retention-of-title clause by itself may not be enough.

Many suppliers assume that if their invoice says "goods remain our property until paid", they’re protected. The PPSR guidance is much clearer: do not rely on contracts alone. If the arrangement creates a security interest, registration may be needed to improve your position.

Without registration, you may be treated like an unsecured creditor if the customer collapses. That can mean standing at the back of a very long line.

Who should pay attention?

This topic is especially relevant if your business:

sells stock on account;
wholesales products to retailers;
supplies building materials or components;
leases or hires equipment;
leaves goods on consignment;
sells under retention-of-title terms;
provides finance over goods;
has customers holding your assets for long periods.

It’s less relevant if you only provide labour or services and there is no security interest in property. PPSR isn’t a magic debt collection tool for unpaid service invoices.

A retention-of-title clause by itself may not be enough.

Without registration, you may be treated like an unsecured creditor if the customer collapses. That can mean standing at the back of a very long line.

Who should pay attention?

This topic is especially relevant if your business:

sells stock on account;
wholesales products to retailers;
supplies building materials or components;
leases or hires equipment;
leaves goods on consignment;
sells under retention-of-title terms;
provides finance over goods;
has customers holding your assets for long periods.

It’s less relevant if you only provide labour or services and there is no security interest in property. PPSR isn’t a magic debt collection tool for unpaid service invoices.

The decision checklist

Ask these questions:

Do we supply goods before we are fully paid?
Do our terms say title remains with us until payment?
Do customers hold our equipment, stock or assets?
Could the customer become insolvent before paying?
Would losing the goods or payment hurt cash flow?

If several answers are yes, the PPSR deserves attention.

Timing matters

Registrations aren’t just about whether you register. They’re also about when and how you register. Priority can be affected by timing, collateral type, whether the security interest is a purchase money security interest and whether the details are correct.

Ask these questions:

Do we supply goods before we are fully paid?
Do our terms say title remains with us until payment?
Do customers hold our equipment, stock or assets?
Could the customer become insolvent before paying?
Would losing the goods or payment hurt cash flow?

If several answers are yes, the PPSR deserves attention.

Timing matters

What to do this week

Review your top 10 customers by outstanding balance. If you supply goods to them before payment, pull out your terms and check whether PPSR protection should be considered.

Sources and useful links

Website disclaimer note: This article provides general information only and does not take into account your circumstances. It is not a substitute for tax, legal, financial, employment, cyber security or other professional advice.

Review your top 10 customers by outstanding balance. If you supply goods to them before payment, pull out your terms and check whether PPSR protection should be considered.

Sources and useful links

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