As outlined in the Equipment Finance Broker Advantage Infographic, there are five critical reasons to…
Personal Property Securities Register – Avoid Financial Disaster!
The Personal Property Security Register (PPSR) is a powerful tool that both individuals and businesses can use to protect their interests when buying:
What is the Personal Property Securities Register?
The Personal Property Securities Register is a Federal Government online platform that was launched in 2012. (Previously each State had its own version of the Register).
Its purpose is to let people know if someone (typically a Bank or Finance company) has a security interest recorded against a specific asset.
For example, when a Lender provides finance for a motor vehicle or piece of equipment, they will typically register a security interest over the asset to protect their position. When the loan is repaid, the interest is removed.
Other Important Information Provided by the PPSR
Why it is critical to perform a Personal Properties Securities Register check
Before purchasing any of the assets outlined above, it is critical to first complete a PPSR check.
The reason for this is that, if the asset has a security charge over it and the borrower defaults, then the Lender has the right to reclaim the asset – any money you paid to the vendor will almost certainly be lost!
Less scrupulous vendors simply take your money and disappear. Even if you can find them, the chances of recovering what you have paid are likely to be remote.
Similarly with insurance write-offs. The asset may appear to be perfect but then you find it is uninsurable or has a limited useful life.
What does a PPSR Report Cost?
A PPSR report can be obtained for as little as $2. This report will indicate whether or not anyone has a security interest in the asset you are looking to purchase.
A more comprehensive (and useful) report will cost between $25.00 and $36.95
A sample report is available for download here.
Protecting your interest using PPSR
Summary
The Personal Property Securities Register is a tool that can be used by both individuals and businesses to avoid financial loss.
Over the years, I have seen cases where people have handed over money in good faith only to lose it all, when a Lender later exercised their right to reclaim the asset when the borrower defaulted.
A quick check using the low-cost PPSR database would have prevented this from happening.
If you would like to learn more, or are looking for finance for equipment or motor vehicle, don’t hesitate to give me a call.
Sharon Piening
Related Posts
