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The PPSR as a risk management tool

The PPSR is the single, national online database of security interests in personal property in Australia.

The PPSR may be relevant to your business clients that are:

  • selling, hiring, renting or leasing on terms
  • buying or selling valuable second-hand goods
  • wanting to raise finance using stock or other personal property as collateral.

Common ways the PPSR can protect business from risk

Protects business when buying second-hand goods:

  • A search of the register when buying second-hand goods will indicate if there is an existing security interest on the item.
  • If there is a prior security interest on the goods, they could be repossessed.

Protects businesses that sell on terms, such as retention of title or consignment, or hiring, renting or leasing out valuable goods, machinery, vehicles and equipment:

  • Businesses can register their interest in goods they have yet to receive payment for, helping them to recover the debt and lessen the risk of losing the goods if the customer does not pay or becomes insolvent.
  • The PPSR legally defines the priority of security interests, with a ‘first in, best dressed’ principle.

Helping clients understand the PPSR

Read information pages on key topics or complex topics such as key concepts, enforcement of security interests, collateral classes and Purchase Money Security Interests. See key concepts explained.