what is PPSR and its role in Asset Finance?
If you’re in the market to purchase assets for your business, it pays to understand the environment to avoid pitfalls that can thwart your time, money, and attention.
The PPSR is one of those terms which pays dividends to understand and utilise as a small business owner.
what is PPSR?
PPSR stands for Personal Property Security Register, and is an official government register. It is a public noticeboard of security interests in personal property that is managed by the Registrar of Personal Property Securities. It’s an essential register for anybody purchasing any form of asset for business or personal use. Utilising this valuable tool can help you avoid being scammed out of your hard-earned money.
As quoted on www.ppsr.gov.au “When someone registers a security interest[?] on the PPSR, they are letting the world at large know that they claim to have a security interest[?] over certain personal property. Personal property[?] includes things like cars, company assets, boats, used goods[?] and intellectual property; it doesn’t include land or fixtures.”
Anybody can search the PPSR to see if someone has registered a security interest over any particular assets you may wish to buy (it’s a good idea to do this before buying any business or personal assets or equipment or lending money to someone).
what details can I check with PPSR?
You can learn about and confirm essential details including: the rightful owner, any encumberment (monies owed), the vehicle’s history – such as whether it has been reported as stolen, written-off, or altered (e.g. cross-referencing serial numbers).
This can aid you in ascertaining the correct value and therefore purchase price, details about the safety and condition of the vehicle or asset, the rightful owner of whom to be purchasing the asset from, as well as any monies owed, to ensure you are purchasing an asset or vehicle without any transference of debt or any other encumberments.
It’s important to be sure nobody else has any claim over your purchased property. Especially, to make sure that there is no debt remaining at the time of purchase.
how can PPSR help me?
As a business owner, you have enough to worry about running and maintaining your business on a day to day basis without having to deal with other issues to steal your time and money away. Running a security check before you purchase your desired asset will reveal all the details of ownership and history you need to know to give you comfort and safety when purchasing.
It’s also important to know, besides being able to search the register when you are purchasing an asset, registering your asset on the PPSR is equally important to give prospective purchasers, or financiers peace of mind if you ever decide to sell or even finance your asset/s.
how important is PPSR for finance?
The PPSR is of great importance for business owners who own assets or equipment that are wanting to: sell, hire, rent or lease on terms; buy or sell valuable second-hand goods; or want to raise finance using stock or other personal property as collateral.
Registering your assets on the PPSR will ultimately speed up this process and make the financing process much quicker and easier for business owners needing additional cash flow.
Thornmoney can take the hassle out of raising funds for your business growth plans, to access additional cashflow, purchase stock, or simply to consolidate some scattered business finance for peace of mind. For more details about the thornmoney simplified business funding solutions, connect with your allocated BDM.
Disclaimer: This information is for general information purposes only. Therefore, the information contained herein does not constitute financial or professional advice or a recommendation. Ultimately, it has not been prepared with reference to your financial circumstances or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice as to whether or not this information is appropriate for you.
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