To help you better understand the PPS Register and how it can help you with your business, we've produced an example storyboard below.
Who needs to know about this?
If you are a business involved in…
- Wholesaling or selling on terms
- Hiring, renting, or leasing out
- Building or construction
- Agriculture or farming
then you need to know about the Personal Property Securities (PPS) Register.
Why do you need to know about the Personal Property Securities Register?
Providing finance, goods or services on credit to a new or existing customer increases the need for credit tools. The PPS Act and its national 24/7 online register, called the PPS Register, provides the ability for you to secure the debt owed to you using all of your customer’s assets (except for land).
How does this affect you?
In the event of your customer’s bankruptcy or default, an effective PPS registration not only gives you priority to be paid ahead of others and to being placed in the same position as that of a secured creditor, but it also enables you to avoid claims by a liquidator to claim back that which your customer had paid you.
- If your customer goes into liquidation or bankruptcy, a PPS registration elevates you to a secured creditor position.
- Less risk = fewer write-offs.
- PPS registrations create sales opportunities.
- PPS registrations can lower the cost of your own credit risk insurance and/or finance.
- PPS registrations create a competitive advantage.
Author: Peter Mills (former Special Counsel)