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Connexus : Issue 39
NEWS www.abacus.org.au 13 www.abacus.org.au 13 What you need to know about the new Personal Property Securities Register. tips... Top for new register The start of the Personal Property Securities Register (PPSR) kicked off on 30 January 2012 and has brought major changes to Australian business practices. Here are some tips from Veda to help you take advantage of the new laws. 1Review your trading activities - Does your business lease or supply goods to par tner s? The PPSR can help you ensure that your business gets paid if a debtor defaults or goes bankrupt. 2Review and amend business documentation – Make sure that all company mater ials are updated in line with the new PPSR legislation. This includes your contracts, terms and conditions and any marketing materials. 3Evaluate your cur rent credit policies and processes – The PPSR is an opportunity to streamline processes and improve efficiencies. You may not want to register and search the PPSR register for all debtors. Take the time to think through your risk strategies and evaluate how you are working to get the most out of the new legislation. 4Train your staff – Make sure that your team understand the new changes and what it means for your business. While a great opportunity lies ahead, to date, the change has been seen as somewhat disr uptive: for example, dates have changed, business processes need to be changed, and there are cost implications. Sign your staff up for a seminar on how to get the most out of the PPSR. 5Check your IT and credit management systems – You may need to make some changes to your internal IT and credit management systems: • Make sure that they enable the collection and storage of information required for the PPSR such as party details, collateral descr iptions and other data required to register and maintain security interests. • If you use automated credit management software – how do your decision r ules change, given you have potentially new infor mation at hand? • Have you thought about how you w ill connect/ interact with the PPSR? • Consider whether you will manage registrations directly with the PPSR or whether you prefer to use the services of a broker. Veda’s PPSR solution is designed to sit on top of the PPSR to help you engage with it more efficiently and cost-effectively. 6Seek legal advice – The Per sonal Proper ty Secur ities Legislation is one of the most significant changes to the rights of trade creditors in the last 20 years. It’s recommended you obtain your own legal advice to understand the full effect of what PPSR means for your organisation. 7Identify which assets need to be registered on the PPSR – A registered interest will have priority over an earlier unregistered one so this will help protect your business assets. Create a list of your current security interests, registered and unregistered, and then identify which of these require action once the PPSR commences. 8Collect accurate information and validate the data. Inaccurate data can mean that your registrations will have no value in the event of insolvency or default. Accurate information is key to registration. If customers are individuals or sole traders, make sure you have the correct name and date of birth as recorded on their driver’s licence. And, try to capture and validate full ABN and ACN details where possible.