What Is the PPS Register and When Should You Use It?
- JLAJLA
- Apr 21
- 3 min read
Intro
You’ve sold goods on payment terms, loaned out equipment, or delivered stock before full payment. But what if the client goes under before you’re paid?
This post explains what the PPSR is, how it works, and when registering a security interest can protect your business.
Why It Matters
Without a PPSR registration, you might be treated as an unsecured creditor if your customer becomes insolvent. That means your goods—or their value—could be lost, even if you never received full payment.
Registering on the PPSR gives you a legal right to reclaim or prioritise your interest in goods you’ve supplied or financed.
What You Need to Know
What Is the PPSR?
The Personal Property Securities Register (PPSR) is an online register that records security interests in personal property (not land). If you sell goods on credit, lease out equipment, or provide finance with retention of title, you may be able to register your interest.
It works a bit like registering a mortgage—but for business assets like stock, machinery, or vehicles.
When Should You Use It?
You should consider PPSR registration if you:
Supply goods on credit (even short payment terms)
Include retention of title clauses in your contracts
Lease or rent out equipment, vehicles, or tools
Provide finance secured against business assets
Want priority if a debtor goes into liquidation
🗾 Tip: You need a written agreement with the right wording—and registration must happen within strict timeframes.
What Can You Register?
The PPSR covers most types of personal property, including:
Inventory and stock
Plant and equipment
Motor vehicles
Intellectual property
Debts and accounts receivable
Licences and leasehold interests
It doesn’t cover land or buildings.
What Happens If You Don’t Register?
If you’re owed money or have supplied goods and your interest isn’t registered:
You may have no right to reclaim the goods
You could lose priority to a bank or another secured creditor
You may be treated as an unsecured creditor if the business collapses
Even if your contract says you retain ownership, that won’t matter unless your security interest is registered.
Buying Assets? Check the PPSR First
Before buying business assets—especially vehicles, plant, or high-value equipment—you should check the PPSR for any registered interests affecting them.
If you buy something that’s subject to a registered security interest, the secured party may still have the right to repossess it—even if you paid for it and didn’t know.
Always do a PPSR search before finalising asset purchases, especially if you’re buying second-hand or buying from a business that may be in financial difficulty.
Commercial Insight
Many small businesses have valid contract terms—like retention of title or security over unpaid goods—but they don’t back it up with PPSR registration. That leaves them exposed.
Registering is low-cost and can be done online, but the agreement and process must be correct. If done right, it gives you serious leverage in the event of insolvency or non-payment.
What to Do Next to Register a Security Interest on the PPS
Review your contracts—do they include security interests or retention of title?
Identify goods or equipment you’ve supplied but haven’t been paid for
Get advice on registering those interests on the PPSR
Set up a process to register early for future supplies or leases
Always conduct a PPSR search before buying high-value assets
Closing Wrap
I help businesses register their security interests on the PPSR—and make sure their contracts support those rights. If you supply goods or equipment and want to protect your position, or want to avoid buying something with hidden risks, I can help.
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