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Resources for advisors: the importance of registering on the PPSR when selling on credit terms

Cashflow is critically important for small businesses, and the COVID-19 pandemic has presented many challenges over the past 18 months.

If your client’s business supplies goods and gives customers a payment timeframe (such as 30, 60 or 90 days) – they are offering credit. The PPSR is one way to help get those invoices paid, or the goods back, if their customer can’t pay.

An invoice or contract, along with an effective PPSR registration, can put your client ahead of banks, other lenders and outstanding tax debts, if their customer goes out of business.

A PPSR registration costs $6 per customer and can cover future supplies of similar goods for up to 7 years.

Looking for more information for your clients? Visit ppsr.gov.au/COVID19 for a range of resources on how the PPSR can help protect businesses from risk.

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