I recently visited with a client in Griffith who is in the business of selling forklifts and other heavy machinery on credit. I spoke with the business owner at length about the importance of registering a security interest in those goods on the new Personal Property and Securities Register (PPSR). My client was able to understand how this registration would potentially save the business thousands of dollars in the event that one of their customers was unable to make payment on the machinery if, for example, the customer went into liquidation.
The business in Griffith agreed that at some stage in the future they would engage EC Credit Control to make registrations on the PPSR on their behalf. Unfortunately, before this client decided to do the necessary paperwork, one of their customers went into liquidation owing them in excess of $20k. They were unable to recover their money or their forklift.
This client showed me a copy of the creditors list for the company that went into liquidation and the pages of creditors that lost money was astounding. Had this client registered on the PPSR, they would have joined a group of only 4 other creditors who were entitled to recover their goods or receive full payment of their debt before anyone else.
Don’t wait any longer – this is not an isolated incident!!!!!