Hey guys, Nathan here.

Recently, I was in a conversation with a Bookkeeper and a client, and we were discussing PPSR.

It’s important for me to stay up to date with the latest regulations and practices that can impact the financial health of a business. One these is such practice that can be beneficial for businesses – the Personal Property Securities Register (PPSR).

So why is PPSR good for your business?

Security for your assets

As mentioned, by registering your security interests on the PPSR, your business can have greater security over your assets.

In the event of a debtor’s insolvency, secured creditors are given priority over unsecured creditors. By registering on the PPSR, businesses can ensure that their assets are considered secured and so, have a higher chance of being recovered.

Reduction of credit risk

By registering on the PPSR, your business can also reduce their credit risk. This is because creditors are more likely to extend credit to a business that has secured their assets. This increased security can also result in lower interest rates for credit, which can save businesses money in the long run.

Easy registration process

The registration process for PPSR is simple and can be completed online. This means that businesses can register their security interests without having to spend a lot of time or resources. Also, the cost of registration is low, making it an affordable option for businesses of all sizes.

Increased transparency

The PPSR also promotes transparency in business dealings. By registering on the register, businesses can view the security interests of other parties, providing greater transparency around the financial health of potential customers or partners.

Compliance with regulations

t’s important to note that registering on the PPSR is a legal requirement for businesses that wish to protect their assets in the event of a debtor’s insolvency. Failure to register can result in the loss of assets, which can be devastating for businesses of any size. Staying compliant with these regulations, you can ensure that you’re protected.

The PPSR can be a valuable tool for businesses of all sizes. Registering security interests on the PPSR, businesses can

protect their assets,
reduce credit risk, and
increase transparency in business dealings.

If you want to discuss, please feel free to contact either myself or the team at NGR Accounting on 02 9011 6669 or info@ngraccounting.com.au.

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The information provided by our firm is of a general nature and does not take into account your specific financial circumstances, needs, or objectives. The information is not intended to be relied upon as specific advice and should not be treated as such. Before making any financial decisions, we recommend that you seek professional advice tailored to your specific circumstances.

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Updated 9th May 2023

Category: Blog, Business, Small Business Tips, Uncategorised

Tags: Banking Advice, business advice, Business Finance, Business Planning, Business Strategy, Shire Accountant, Sutherland Shire Accountant

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