If you can relate to any of the following examples, then using the PPSR makes good sense.
Hire purchase, lease or trade agreements
You require a customer to sign a hire purchase, lease or trade agreement that includes a retention of title clause. Registering a security interest in the property on the PPSR gives you a much better chance of recovering what you’re owed should the customer be unable to pay.
Buying a second-hand vehicle
You’re looking for a used car, but you want to be sure there’s no money owing on it. A quick search of the PPSR can tell you if any third party has registered a security interest in the vehicle.
Checking collateral offered as security
A customer with cash-flow difficulties asks your company for a loan, offering a vehicle or other goods as collateral (security). You can search the PPSR to see whether the customer has offered the same collateral to other lenders.
Credit-checking potential customers
A customer wants to buy goods from you, but you have some doubts about their creditworthiness. To help you assess the risk involved, you can check the PPSR for any security interests registered against the customer’s property.
To search the PPSR or to register financing statements, you need to first set up an online services account. This takes only a few minutes.