You and your staff have worked hard to produce goods. If you sell your goods on credit, no doubt, you eagerly await payment for those goods each month. Did you know that you can take a positive, cheap, and effective step to protect your business and your goods while you’re waiting to receive payment?
The Personal Property Register (“PPSR”) is a publicly accessible, searchable database that allows secured creditors to notify the world that they have an interest in goods that are in the possession of someone else. This interest is called a security interest. Registering your security interest can be done online. The document you register on the PPSR is called a financing statement. Your financing statement notifies other parties that, if the debtor does not pay you the amount it owes or fails to perform its obligations to you, you have the right to take back your goods.
You can also search the PPSR online:
- by a party’s name or company number, which will tell you who has registered security interests against that party and what goods have been secured.
- for specific goods by serial number, which will tell you whether another party has a registered security interest in that good.
PPSR searches cost $3.00 each.
The PPSR is a useful business tool. Even though the PPSR has been used in New Zealand since 2002, we regularly deal with creditors who are not taking advantage of the PPSR.
If you want to discuss how you can use the PPSR to your best advantage, give the team at McDonald Vague a call. We’ll help you get it right.
