Use the PPSR to protect client supply
Introduce a client to the Personal Property Securities Register at a practical level, so a business supplying goods on credit understands why registering its interest can change the outcome if a customer fails.
What this play helps you do
- Explain in plain terms what the PPSR is and why it exists
- Identify which clients should be thinking about registration
- Connect retention-of-title terms to a registered security interest
- Understand the cost of getting registration wrong or late
- Refer the client to specialist advice to set it up properly
8 min read
When to run this
This play is for clients who supply physical goods on credit — wholesalers, manufacturers, equipment suppliers, trades who leave materials on site, anyone who hands over stock before being paid. If a customer goes into administration owing for goods that have not been paid for, the question of who has a registered security interest can be the difference between recovering those goods and standing at the back of a queue with nothing.
Most owners have heard of the PPSR and assume it is either irrelevant to them or already handled. Run this conversation to find out which, because the assumption is frequently wrong and the cost of being wrong only shows up at the worst possible moment.
The play (steps)
Your role is to raise the issue clearly and route the client to proper advice — registration has real legal mechanics that reward getting it right:
- Explain the register. The PPSR is a national register where a business can record a security interest in personal property — including goods it has supplied but not yet been paid for.
- Link it to terms of trade. A retention-of-title clause says the supplier keeps ownership until payment; registration is what helps make that claim effective against other creditors.
- Assess exposure. Look at how much stock the client routinely has out on credit at any time — that is the value at risk.
- Flag timing and accuracy. Registrations must be made correctly and in time; errors and late registrations can undermine the protection.
- Refer to a specialist. Because the consequences of getting it wrong are severe, point the client to a lawyer or PPSR specialist to set up and maintain registrations.
What good looks like
A well-protected supplier has terms of trade that reserve title until payment, a process that registers its interest on the PPSR correctly and promptly for credit customers, and someone responsible for keeping those registrations current. If a customer collapses, the business is in a far stronger position to claim its goods or their value than an unsecured supplier who simply trusted that the invoice would be paid. The protection is invisible until the day it matters, and then it matters enormously.
What to say to the client
Anchor it in a concrete scenario: “Picture your biggest customer going under next month owing you for a full container of stock. The supplier who registered on the PPSR can fight to get those goods back. The supplier who didn't joins the unsecured creditors and usually gets cents in the dollar, if anything. The register is how you decide which of those two you'll be.”
Be clear about your lane: you are flagging a serious gap, not setting up the registration yourself. The mechanics belong with a specialist, and this is general information rather than legal advice.
Common mistakes
The most damaging mistake is assuming retention-of-title terms protect a supplier on their own, without registration — they often will not be enough against other secured creditors. The second is registering incorrectly or late, which can void the protection just when it is needed. The third is registering once and never maintaining it as the business and its customers change. Because the stakes are high and the rules are technical, this is firmly an area for specialist help.
Key takeaways
- The PPSR lets a supplier register a security interest in goods supplied on credit.
- Retention-of-title terms are far stronger when backed by correct registration.
- Errors and late registrations can undo the protection entirely.
- Flag the gap, then route the client to a PPSR specialist or lawyer.
FAQ
Which clients actually need to think about the PPSR?
Primarily those supplying physical goods on credit, where stock changes hands before payment. The more value a client routinely has out on account, the more registration matters. Service-only businesses have a different risk profile.
Isn't a retention-of-title clause enough on its own?
Often not. Retention of title reserves ownership, but registration is typically what makes that interest effective against other creditors in an insolvency. Treat the clause and the registration as a pair, and get specialist advice on both.
Should an adviser register on the PPSR for a client?
Registration has technical rules and serious consequences if done wrongly, so it is best handled by a lawyer or PPSR specialist. An adviser's role is to raise the issue and ensure the client gets that help. This is general information only.
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