Personal Property Securities Register (PPSR): How Suppliers Protect Themselves When Extending Credit

Mon, 17 Aug 2026 16:17:10 +1000

Personal Property Securities Register (PPSR): How Suppliers Protect Themselves When Extending Credit

If your business supplies goods or equipment on credit — trade terms, retention of title, consignment, or equipment leasing — and your customer later becomes insolvent, your legal right to reclaim that property can depend entirely on whether you registered a security interest on the Personal Property Securities Register (PPSR). Many businesses assume a "retention of title" clause in their terms and conditions is enough on its own. It generally isn't, without also registering that interest on the PPSR.

What the PPSR Actually Does

The PPSR is a national register of security interests in personal property (broadly, anything other than land) — allowing a business that has a financial interest in goods supplied to a customer to register that interest, giving it priority and protection if the customer later becomes insolvent or a dispute arises over ownership.

Without registration, a supplier's retention of title clause may still be contractually valid between the supplier and the customer directly, but it typically won't be effective against a liquidator, administrator, or other secured creditors if the customer becomes insolvent — meaning the goods can end up being treated as part of the general pool of assets available to all creditors, rather than being returned to the actual supplier who retains legal ownership under their contract terms.

Common Situations Where This Matters

Supplying goods on standard trade credit terms, particularly with a retention of title clause included in terms and conditions.

Equipment or machinery supplied under lease, hire, or rental arrangements, especially longer-term arrangements.

Consignment stock, where goods remain the supplier's property until sold by the customer.

Goods supplied to a business that manufactures or on-sells them, where the supplier's interest in the original goods (or their proceeds) needs specific registration to be properly protected.

Why "It's in Our Terms and Conditions" Isn't Enough

A written retention of title clause establishes the contractual position between supplier and customer — but insolvency law generally prioritises registered security interests over unregistered contractual claims when a liquidator or administrator is distributing a company's assets. If your interest isn't registered on the PPSR, a liquidator can potentially treat your goods as part of the general asset pool, leaving your business as an unsecured creditor for the value of goods you may have believed you legally still owned.

What Registering Actually Involves

Registering a security interest on the PPSR generally requires:

Correctly identifying the grantor (your customer) with accurate identifying details, since an incorrect registration can be considered ineffective.
Describing the secured property accurately, whether that's specific serial-numbered goods, general inventory, or a class of property.
Registering within the correct timeframe — for many supply arrangements, registration needs to occur promptly, and specific "super priority" protections for purchase money security interests generally require registration within a set number of business days of the goods being supplied or the customer taking possession.
Renewing the registration if required, since some registrations have an expiry date and lapse if not renewed.

Common Mistakes That Undermine PPSR Protection

Registering with incorrect grantor details, such as an outdated ABN, incorrect entity name, or wrong trading name — even small errors can render a registration ineffective when it matters most.

Missing the registration timeframe for purchase money security interest priority, losing the enhanced protection available to suppliers who register promptly, even if a registration is eventually made later.

Assuming a single registration covers an ongoing trading relationship indefinitely, without confirming whether the registration needs to be renewed or whether it properly covers new goods supplied over time.

Not registering at all, on the assumption that trade terms and conditions alone provide sufficient protection.

What to Check in Your Business

Review your current trade terms and conditions to confirm whether retention of title clauses exist, and whether a corresponding PPSR registration process is actually in place.

Confirm registrations are being made within the required timeframe for new customers or new supply arrangements, not as an afterthought once a payment issue has already arisen.

Check grantor details are accurate on existing registrations, particularly for long-standing customers where business structures or entity names may have changed since the original registration.

Review whether registrations need renewing, since a lapsed registration provides no protection despite having been valid previously.

Protect Your Position Before a Customer Becomes a Problem

By the time a customer is showing signs of financial distress, it's generally too late to register a new security interest with full protection — this needs to be part of your standard onboarding process for credit customers, not a reactive step taken once a payment issue emerges.

RBizz reviews trade credit arrangements and PPSR registration processes to help protect your business's position — get in touch to check your current setup.

RBizz Corporate Accountants - Resources #PPSR registration

Personal Property Securities Register (PPSR): How Suppliers Protect Themselves When Extending Credit