It is important to act now to register any outstanding pre-PPS Act security interests on the PPSR before the transitional/grace ends on 31 January 2014.
Do you sell goods on terms, such as retention of title, or leasing out valuable goods?
Under the PPS Act a person who supplies goods or leases goods to a customer can be treated as having a security interest in the goods (on the basis that the supplier retains ownership until paid). Failing to register this entitlement (known as a security interest) on the PPSR can mean these goods will be lost to their customers creditors even though the owner of the goods has not changed.
If your customer becomes insolvent, the bank will probably have a registered interest, so they will benefit and you will lose.
If you are a vendor of goods, now is the time to ensure your terms of trade are effective and to understand the procedures to avoid an increase in the potential for bad debts.
Do you purchase valuable second-hand items? You can check the PPSR to see if goods such as a vehicle, machinery, stock or other items that you intend to purchase are subject to security interests. Doing a search to check before you make a purchase is low cost, easy and gives immediate results.