PPS reform for business

The new PPS Register is part of a reform that changes the way secured finance operates in Australia.

 Business owners may be affected by the changes to personal property securities laws as:

• borrowers
• providers of credit 
• buyers of property that may be subject to a security interest, or
• investors who are contemplating buying into a new business.

The PPS Register replaces a number of registers of security interests and provides a single national noticeboard of security interests in personal property.

Property that can be included on the PPS Register includes almost anything except land and fixtures (such as buildings). Initially, it is expected a large proportion of registrations will be company charges and interests over motor vehicles.

Boats, machinery, crops, shares, art, intellectual property and contract rights can all also be offered as security for a loan and therefore included on the PPS Register.

If you are a business owner, the PPS Register can help you:

• manage credit risk
• check whether property you plan to buy has a security interest in it, and
• register assets used to secure a loan you have made, or where goods are supplied on credit terms.

Issues for business owners to consider

• Do you need to search the PPS Register?
• Do you have security interests that are registrable under the PPS reform rules and, if so, whether to make a registration?
• When to register your security interests to make sure you do it on time.