PPSA & PPSR Explained
The Personal Property Securities Act (PPSA) was introduced to Australia in 2011 to provide legal protection to businesses that hire, lease or rent goods on credit, or sell goods under retention of title clauses. Note: Personal property is all forms of property other than real estate.
To be protected you must have a valid registration on the Personal Property Securities Register (PPSR). Whilst many businesses are registering on the PPSR, the process can be complicated and simple errors can be made which can invalidate their registration. This means in the event their customer goes into liquidation, they may become an unsecured creditor, unable to recover their debts.
Without adequate protection, you may be considered an unsecured creditor. So when a customer goes bust, you have significantly less chance of recovering your debts.