Business or Personal Loans (PPSA)

Remember, the PPSA is all about security; if you have security you better register it on the PPS Register if you want to rely on it on your borrower’s insolvency.

You also know how hard it is to get a loan from a Bank without a sufficient level of security and if you do get the facilities, the Bank will get security over all your business and often personal assets.

Why should you be any different? Often in business, you create a loan but don’t document it and usually don’t bother with security.  Why?

These are just some of the everyday examples we see:

  • Shareholder’s or Director’s lending money to their business;
  • Relatives lending money to each other, their businesses, their children’s/grandchildren’s businesses;
  • Friends lending money to friends;
  • Business to business loans (particularly related party loans).

Often these loans go undocumented, unsecured and almost always, aren’t registered on the PPS Register.

There is one, monster reason to document, secure and register your loans, it’s asset protection ‘101’.

If I slip my liquidators ‘hat’ on I’ll show you a very typical example:

  • Jan and Bob have borrowed $250k from their parents to start their new business.
  • They’ve acquired machinery and several delivery vehicles.
  • They’ve been trading for 3 years when Bob falls sick, business falls off and suddenly they are in financial trouble.
  • Realising the problem, Jan and Bob have no alternative than to appoint Voluntary Administrators.
  • The financial position is not good – with liabilities of over $600k and assets of only $200k, creditors will be lucky to get back 25 cents in the dollar.

The two scenarios for the parents are:

  • Rank as an unsecured creditor with all the other creditors and recover a quarter of their money; or,
  • Rank as a secured creditor with priority over the other creditors and recover around three quarters of their money.

And the difference between the two scenarios?  A loan document incorporating security and the registration of the security on the PPS Register.

Documenting and then registering your security is absolutely critical; unless you register your security, you’ll lose it on the borrower’s insolvency/bankruptcy, and not be able to enforce it.

We can help you with your security documentation and of course, its registration on the PPS Register.  It’s what we do.


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Be prepared for an uncertain economy

We’ve seen it many times before – when the economy nosedives, many businesses follow. Protect your business from the insolvency of others.

Long-term security

Trying to recover your debt and/or equipment after your client becomes insolvent is too late. Tighten your security to protect future payments and/or hired equipment.

Complicated paperwork done for you

Don't stumble at the final hurdle. We handle all the crucial paperwork to ensure you are correctly registered and your assets protected.

PPSAdvisory advises against several proposed revisions to the PPSA legislation due to potential increased costs, complexity, and uncertainty for businesses.


On Friday 17 November 2023, PPSAdvisory submitted a detailed response to the proposed amendments in the Personal Property Securities (PPS) framework. They challenge a number of the 345 proposed amendments made in the government’s response to the 2014 Whittaker report.


After almost 12 years of implementing the register, PPSAdvisory is concerned that these revisions will burden businesses with additional costs, complexity, and uncertainty instead of providing tangible benefits.


Users of the PPSA have adjusted their policies and registration practices to comply with the current legislation. Implementing such significant changes as proposed would require a complete overhaul of policies and practices. Additionally, these proposed amendments would render the policies and practices of many Australian businesses and financiers, particularly those involved in equipment hire, unworkable.


As result, the availability of finance for mining, construction, and heavy earthmoving equipment would be directly impacted. If financiers are unable to register their security interest in specific items of equipment (as only equipment with a Vehicle Identification Number can be registered by serial number), obtaining finance for such equipment will

become even more challenging.


We now await the response from Government to the submissions which have been made.


Feel free to reach out to us via the ‘contact us’ page on the website if you’d like any further information.