COVID-19: Check your PPS position
2 mins reading time
The launch of the Personal Property Securities regime has dramatically impacted the way businesses should secure their interests when supplying (by sale or lease) goods, equipment, inventory and loans etc. The PPS regime is a fundamental part of the commercial landscape.
The COVID-19 pandemic has impacted businesses in different ways. Some businesses have seen a significant increase in demand, or have adapted their business practices to satisfy new needs and opportunities. However, COVID-19 has unfortunately been uncompromising to many others, resulting in previously strong businesses now struggling to stay afloat, or sinking altogether.
Given the significant financial pressures now being experienced by many businesses, slow payments and non-payments are likely to occur, and increase.
In order to maximise your security position, to recover your goods or the money owed to you for them:
- Re-consider the “old” PPS policies and procedures that you have previously implemented in your business:
- Has your debt risk profile changed as a result of COVID-19 pressures?
- Do you have some customers who (for relationship or other reasons) you haven’t previously uploaded PPS registrations, but now you should?
- Is your ‘usual’ PPS security sufficient, or should you be seeking new or additional types of security?
- Re-check your obligations under your debtor insurance policies (if any).
- For those businesses that do already utilise the PPS regime, check the validity and currency of your PPSR registrations. For many, these may have expired seven years after being initially registered.
Macpherson Kelley is experienced in providing advice relating to the application of the PPSA to businesses. We provide tailored, practical advice that enables our clients to realise the benefits of the PPS regime. For more information and assistance, please contact our Trade Team.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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COVID-19: Check your PPS position
The launch of the Personal Property Securities regime has dramatically impacted the way businesses should secure their interests when supplying (by sale or lease) goods, equipment, inventory and loans etc. The PPS regime is a fundamental part of the commercial landscape.
The COVID-19 pandemic has impacted businesses in different ways. Some businesses have seen a significant increase in demand, or have adapted their business practices to satisfy new needs and opportunities. However, COVID-19 has unfortunately been uncompromising to many others, resulting in previously strong businesses now struggling to stay afloat, or sinking altogether.
Given the significant financial pressures now being experienced by many businesses, slow payments and non-payments are likely to occur, and increase.
In order to maximise your security position, to recover your goods or the money owed to you for them:
- Re-consider the “old” PPS policies and procedures that you have previously implemented in your business:
- Has your debt risk profile changed as a result of COVID-19 pressures?
- Do you have some customers who (for relationship or other reasons) you haven’t previously uploaded PPS registrations, but now you should?
- Is your ‘usual’ PPS security sufficient, or should you be seeking new or additional types of security?
- Re-check your obligations under your debtor insurance policies (if any).
- For those businesses that do already utilise the PPS regime, check the validity and currency of your PPSR registrations. For many, these may have expired seven years after being initially registered.
Macpherson Kelley is experienced in providing advice relating to the application of the PPSA to businesses. We provide tailored, practical advice that enables our clients to realise the benefits of the PPS regime. For more information and assistance, please contact our Trade Team.