This registration process has been In effect for some time, however most businesses or SME’s are still unaware or skeptical about its use and why they should register. This could be because they do not understand the registration process and how it can help them in their business activities. The PPSR register is the only available option to log details of security interests in terms of personal property, such as vehicles, art, plant equipment, livestock etc. Earlier it seems different states in Australia had its own registry costing more for registration of a business, if it has operations in different states. However, with the single register policy this has been removed, streamlining the recording process and retrieving of data. Let’s look at some of the most common benefits of this initiative.
Better form of keeping records: with one standard recording process, keeping track of your properties has never been easier. Since one record is considered valid throughout the country, there is no need for maintaining multiple stats on property in different states. This reduces the amount of resources and costs incurred in keeping track.
Information search and tracking is easy: the one record policy gives easy access to information on properties. You can easily check online by using either registration number, type of good or even a serial number. For example if you are to purchase a second hand vehicle for your business. Before doing any transactions you can check online if anybody else has logged a security interest on the vehicle. If the owner or seller has run-in to financial difficulties with the financing company for the vehicle, chances are that the financier is looking to reposes the vehicle, which will not be good for you. Therefore such a prior checkup can help you avoid problems of that nature.
Levels of credit risk is improved: if individuals that buy on credit from you run in to financial trouble, you can still ensure that you get paid on time by registering your security interests on the goods that are given on credit. This also means that you still have the ownership of the goods leased out, helping you in managing the businesses’ credit risk. In the older system debt recovery was very difficult, however in the present system; you can secure certified debt collectors NSW as a form of insurance against default.
Retention of title: this allows an organization that routinely supplies goods to a third party to retain the ownership of the goods until the purchaser has met certain agreed conditions. This helps the supplier in situations in which the buyers default or runs in to financial difficulties.