PPSR protection when supplying goods on credit for installation

A person working on a roof, installing shingles with a nail gun.

Tom’s a busy roof tiler. He often gets the tiles delivered on site so they’re ready and waiting for installation when his crew arrives.

Tom’s worried the principal contractor, Paul, like many builders, is under financial strain due to COVID-19.

Tom’s accountant set up his terms of trade to include a condition that Tom retained ownership of the tiles until full payment is made by Paul. He also advised him to add this information to the Australian Government’s PPSR before any tiles are delivered. That way, if it all heads south for Paul, and his building business collapses, Tom knows he can collect his tiles from the site – provided they’re still there and uninstalled. If they’re gone, he’s not too worried as his $6 PPSR registration helps to ensure he’s at the front of the queue of creditors (including Paul’s bank) to get the money he’s owed for the tiles.

For more information see Trying to get your invoices paid.

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