HOW TO MANAGE RISK The role of the PPS Register (PPSR)

The PPSR helps mitigate credit and general risk in several ways: z Correctly registering your security ensures you can enforce it on the insolvency of your customer; z Searching your counterparty on the register can provide an insight on their debt structuring; and, z Searching a vendor (particularly when acquiring motor vehicles or boats) is critical to ensure you obtain good title to the equipment.

The PPSR has been criticised for its role in facilitating registration errors, sometimes with fatal outcomes for the secured party. For this reason, many choose to use third party registration software to perform their registrations and searches.

Just as there are many grades of diamonds, there are many grades of registration software, make sure you’re using the best. At a minimum your software should: z Use ‘wizards’ to assist in developing your PPSR policy and registration practices; z Utilise templates to ensure all your registrations are consistent with your registration policy; z Enable bulk registrations, amendments and searches; z Validate your Grantor details and alert you to any issues; z Not allow a Grantor ABN registration where an ACN exists; z Monitor your Grantor status and alert you to any changes; z Provide lots of notice of upcoming renewals and enable auto renewal; z Monitor and alert you to PPSR registrations performed against you; z Provide a useful dashboard of all key information; z Provide comprehensive reporting; and, z Ideally, provide access to AFSA in Australia and MBIE in New Zealand for a consistent user experience across both registries.

Businesses often spend time and effort creating security to mitigate credit risk, going the ‘extra yard’ to correctly register the security can be forgotten, yet it is the only way to protect the security against insolvent customers.

Xander van der Merwe

Co-Founder PPSR Cloud

E: xander@ppsrcloud.com

T: +64 21 862 555, ppsrcloud.com

• PPSR policy and registration ‘wizards’

• Registration templates

• Bulk registrations, amendments, renewals, and searches.

• Grantor Validation

• Automatic correction to Grantor ACN

• Grantor monitoring and alerts

• Automatic renewals and alerts

• Notification when PPSR registrations are performed against you

• Brilliant dashboard

• Comprehensive reporting

• Single platform access to Australia and New Zealand PPSR