Secured Creditor PPS Registrations
Why do you need to register on the PPSR?
Our Resources & About Us pages are full of examples from the Australian Financial Securities Authority, the government body that administers the PPSR. In summary the reason you should “Perfect a Security” on the PPSR is to legally register your interest in the following:
- Ownership - If you don’t register your equipment on the PPSR, your RISK is that it could be seized and sold without your permission if it is left on a job site.
- Retention of Title – If you don’t register your interest in your materials provided on credit under the R.O.T clause in your Terms & Conditions of Trade you run the RISK of losing your materials & payments for those materials.
- Liquidations - If you don’t register on the PPSR & have been paid by your client before they go into liquidation, you are deemed to be an unsecured creditor and your RISK is paying back 6 months of paid invoices. e.g. $10,000 that you were paid monthly = $60,000 total to now be repaid to the liquidator under Preferential Payment Claw Back.