PPSA Update

Accounts Receivable Solutions are revising the Terms and Conditions of Trade for clients for whom we wrote Terms two years ago.  The reason for the up-dating is that since that time issues have occurred which new clauses help fix. Most concern PPSA cases – especially receivers and financiers seizing and selling goods and equipment they otherwise would have no rights to. To help protect businesses’ title to unpaid-for goods and for equipment in premises/sites/warehouses not under their control Accounts Receivable Solutions undertake a “Terms of Trade Vulnerability Assessment” for $95 plus GST. If they are up-to-date clients have peace of mind and no further costs. If the client decides the Terms of Trade need updating Accounts Receivable Solutions will provide a quotation and deduct 50% of the review cost from its fee, which for most small to midsize clients is $700 to $1,000 plus GST. Please contact me at adrian@arswa.com.au if you could benefit from the assessment.

Your Terms of Trade & PPSA

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 adrian@arswa.com.au , to learn more about PPSA in simple, down-to-earth, language and how I can help introduce the PPSA to your business.