Why PPSR still matters (and when it pays for itself)
If you sell goods on account, lease or hire equipment, or take security over a customer’s assets, the Personal Property Securities Register (PPSR) is one of the most practical credit-control tools you have. Done right, registering on the PPSR can strengthen your priority if a customer can’t pay or becomes insolvent, and can be the difference between recovering your goods (or getting paid first) and being treated as an unsecured creditor.
In plain English: PPSR is about clearly recording your security interest in someone else’s personal property (anything other than land). If the worst happens, the timing and accuracy of that registration often determines who gets paid first.
Common PPSR pitfalls (and how to avoid them)
- Getting the timing wrong. Late or incorrect timing can subordinate your interest. Build PPSR checks into customer onboarding and dispatch workflows so registrations happen before supply or within required timeframes.
- Incorrect debtor or serial-number details. Typos, wrong ACN/ABN, or vehicle serial errors can invalidate a registration. Use data validation and double-checks.
- Letting registrations expire. Diarise renewals and use batch tools to renew well before expiry.
- Using generic terms & conditions without PPSR clauses. Ensure your credit terms include security interest language, retention of title (if applicable), and customer consent to register.
- Assuming ‘we’re too small’. Insolvencies hit businesses of all sizes; PPSR is affordable protection.
A practical, step‑by‑step approach
1) Map your exposures. List where you extend credit, supply on ROT, lease/hire, or take charges over assets.
2) Prepare your paperwork. Update credit apps/terms with the right security interest and PPSR consent language.
3) Register the right way. Choose the correct collateral class, check debtor identifiers (ABN/ACN or individual details), and include serial numbers for motor vehicles, watercraft, aircraft, etc.
4) Validate and diarise. Save verification statements, set renewal reminders (typically 1–7 years depending on your strategy), and test your offboarding/recovery process.
5) Monitor. Regularly audit your register entries and customer risk to make sure your protection keeps pace with your trading.
Tip: If your customers are in higher‑risk industries or you supply high‑value movable assets, elevate PPSR to a mandatory step before dispatch.Mini case study (illustrative)
A NSW equipment hire company supplied a $85,000 excavator on 60‑day terms with retention of title, but didn’t register on the PPSR. The customer entered administration after two months. Without a valid PPSR registration, the hire company was treated as an unsecured creditor and recovered only cents on the dollar. Had they registered correctly at the outset, they likely could have reclaimed the excavator or gained priority in the proceeds.
Quick checklist
- Credit application includes PPSR/security interest wording
- Debtor details validated (ACN/ABN or individual ID)
- Correct collateral class selected
- Serial‑numbered property captured (where relevant)
- Registration lodged before supply (or within required timeframes)
- Verification statement saved
- Renewal diary entries created
FAQs
Is PPSR only for big companies? No. If you sell on account, lease, or provide equipment, the PPSR can protect you no matter your size.
Does PPSR guarantee I’ll get paid? No—however, correct and timely registration can significantly improve your recovery or priority if a customer defaults.
What does it cost? Government fees are modest relative to the protection provided; most businesses absorb PPSR as part of standard credit control.
Helpful resources
- PPSR Education Hub — Resources (Australian Government) → https://www.ppsr.gov.au/education-hub/resources
- Case studies: Getting your gear back if your customer can’t pay → https://www.ppsr.gov.au/education-hub/ppsr-case-studies/ppsr-protection-getting-your-gear-back-if-your-customer-cant-pay
- How to register on the PPSR → https://www.ppsr.gov.au/registering
- The importance of timing for the PPSR (AICM) → https://www.aicm.com.au/news-item/16630/the-importance-of-timing-for-the-ppsr
- ASIC: Insolvency for creditors → https://asic.gov.au/regulatory-resources/insolvency/insolvency-for-creditors/
Where Trade Credit Insurance Fits:
- PPSR protects legal priority over goods and assets
- Trade credit insurance protects cash flow if a loss still occurs
Best‑practice credit management typically combines contract discipline, PPSR registration and insurance protection, rather than relying on any single tool.
Make PPSR your first line of defence, with insurance as the backstop.
Talk to us about the right setup for your ledger.
Kind regards,
Babette Bottin
Director DAS Insure Pty Ltd
Note
These resources provide general information – they do not constitute and are not intended to be legal advice. You may wish to seek professional advice from your accountant, financial adviser or lawyer.
