PPSR Asset Protection

Small Business PPSR Asset Protection

We live in changing and challenging times for small business.  The society we live in has become increasingly litigious and insurance companies are either charging exorbitant amounts for insurance protection against litigation or other claims, or refusing to provide insurance at all.  Once it was a case of putting structures and complex asset protection strategies in place to shelter assets from predatory creditors, but even that has its limitations.  However, PPSR Asset Protection has suddenly changed the landscape back in favour of the small business owner!

Consider the example of an equipment hire business, where it provides, for example, a loader to a landscaping business loading gravel or topsoil.  One would think that the ownership of the loader was with the equipment hire business that purchased it and then hired it to the landscaping business.  However, if that landscaping business got into trouble, the fact that the loader was on the premises at the time the creditors took possession may mean that the equipment hire business loses its equipment!

PPSR Asset Protection can change that, and much more.

PPSR Asset protection stands for the Personal Property Securities Register and was established recently by the Federal Government specifically to deal with these challenging situations.

It is a very simple and inexpensive matter to register equipment and much more for PPSR Asset protection.  When used in combination with common sense business structures and asset protection strategies, it can assure that your assets, earnings and property will remain yours, regardless of the circumstances.

What difference does PPSR Asset Protection make?

In the case of the loader above, when the business is liquidated, we all hear about how the liquidators rape the accounts and pay themselves first.  Well, they aren’t actually first.  Assuming that there is no PPSR Asset protection in place, the Employee Entitlements are first, so their wages and superannuation are paid out before anyone else gets a look in.  Then the liquidators take their pay.  The owner of the loader in this case, would be last as an unsecured creditor, to receive anything from the disposal of their own equipment.

However, with the correct PPSR Asset Protection strategy in place, our equipment hire business could actually go to the top of the list of creditors and legally take back their loader, before any other payments are made, to employees or the liquidators.  It’s only fair too – the equipment didn’t belong to the landscaping business, and was never on their balance sheet.  It always belonged to the equipment hire business!  PPSR Asset protection can ensure that.

PPSR Asset protection can be used to secure personal property of all forms, including machinery, cars, equipment, boats, livestock, crops, as well as intangible items.  These include loan accounts, trading stock and retention of title, accounts receivable, plant and equipment, hire of goods and licenses and intellectual property.

In the simplest of situations, you can check for other security against a car you are thinking of buying with a PPSR check – look here!

This is such a critical area of small business that PPSR Asset protection will actually be taught by an expert in the field to all members of the Executive Mastermind Diploma of Business program.  We believe it is absolutely critical, to the extent where we are modifying the curriculum schedule to make room for this new material to be provided to the business owners in our Diploma of Business, free of charge.

Protect yourself and your business

For more information on PPSR Asset protection or the Diploma of Business program, please contact us immediately.  You may not realise it but there could be crucial areas of your business unprotected right now, leaving you vulnerable to predatory creditor attacks, when simple asset protection strategies can minimise or even eliminate that risk.

Contact us now, to have an expert assess your risk, or to enrol in the Diploma of Business program for education in this and many more essential business structure and strategy tips – the ones that can make a massive difference to your life and business success!

Til next time, take time to enjoy the life you live.

Ray Jamieson