How will the Personal Property Securities Act (PPSA) affect your business?
If you don’t know the answer to this question you could be at serious risk of losing what is owed to you or even the articles which you have sold to your ailing customer.
All businesses that supply goods to their customers or distributors, on the basis that they retain title until payment is made, are at risk if they do not appropriately register their sales on the Personal Property Securities Register (PPSR).
An important starting point in having the PPSA protect your interests is having an up-to-date Credit Application Form with your Terms of Trade (or TOTs) – which incorporate the provisions of the PPSA – attached.
The TOTs are your Rules of Engagement, they set out your rights and obligations as well as those of your potential customer. They will include a section relating to your business retaining Title of the goods sold until such time as you are paid and the important PPSA clause will support your position in this.
They should be signed by would-be customers and witnessed to show they have read, understood and agreed with your terms. If there are any clauses deleted or amended you should think carefully about the ramifications of those changes in deciding whether to accept the customer on terms which they are setting out to you.
Give me, Adrian, a call on 0427 881 818 or email me at email@example.com , to learn more about PPSA in simple, down-to-earth, language and how I can help introduce the PPSA to your business.