HomeSec Business Finance is a short term funder who provides loans for business purposes, they are a secured loan using equity in real estate. Not only do we provide loans for business but we like to provide information also. Below is some information on the PPRS system, a PPRS charge will be lodged when there is a business loan on property or a secured loan using a vehicle or equipment.
The Personal Property Securities Register (PPSR) is a part of a reform that affects or influences the way in which businesses and consumers deal with any secured loan in Australia. It is a single point of access to register a business loan on property and check security interest by businesses and consumers on their personal property. It protects your business when you use your business assets. PPSR is the single, national, online database of security interests.
The following items can be registered in the PPSR:
- Vehicles and transportation automobiles
- On consultation contracts retained by you
- Artworks, trades and other tools
- Goods owned by businesses or individuals, be it secondhand or new.
- Financial property such as shares, cash and cheques.
- Other property
Section 46(1) of the PPSA states that a buyer or lessee of a personal property can free it from a security interest if the seller or lesser had sold his business or leased the property in the ordinary course of the seller’s sell of business or had been leased in the same kind. However, going by the Section 46(2) of the PPSA, a buyer or a lessee would not be able to make their business free of security interest where:
- The property is described by a serial number and the buyer or the lessee holds the property as either inventory or holds it on behalf of somebody who owns the collateral as inventory , OR
- The buyer buys or the lessee leases in spite of knowing that the sale or lease of the personal property would constitute a breach of any security agreement that provides for the security interest.
The Benefits of PPSR are:
The benefits of the register lie in the fact that it allows one to claim interest on one’s personal property at a very low cost. This works in situations and circumstances such as when you no longer hold ownership of the goods, that is, if these goods have been hired, or leased out, or rented. It also works on cases when the goods had been left behind during the course of the completion of the construction in the site. This especially comes to help as it protects your personal property, be it goods or assets after registering.
Apart from & barring registering for the PPSR, there are some other ways that one can make use of to protect his/her business. Following are to be noted to free your business from security:
- The payment terms and conditions should be kept in hand before providing customer credit.
- To understand and work out ways to recover debt for the services you have provided.
- Research and analyze to find favorable suppliers for your business.
- Conduct risk assessment and develop a security plan: It is necessary to be well versed with the potential vulnerabilities & susceptibilities of your own business, and to cope with break-in and thefts hire guards, install new fencing, cameras, etc.
- Keep your property well-lit and also install 24x 7 surveillance.
- Review your security plans on a regular basis.
The PPSR charge is released when a secured loan or a business loan on property is repaid.
We hope this information is helpful on how a secured loan or loans for business are further secured under the PPSR system.
