At the Quinn Group, we deal with a lot of small to medium-sized enterprises (SMEs). With approximately 2.3 million SMEs in Australia, this is a large demographic of businesses. Most SMEs alarmingly, do not have any protection from a business structure and so it is highly advisable that they register their businesses on the Personal Property Securities Register (PPSR). This records the investment in the business as a formal, documented loan and provides owners with confidence to continue investing in their business and recover funds should the SME fold.
Sadly, this advice is falling upon deaf ears; not being followed for many reasons. These reasons include: people opening new businesses not seeking advice prior to commencing, the advice not extending to registering a security interest on the PPSR and the expensive nature of preparing documents for registering their interest on the PPSR.
None of these reasons are commercially viable reasons. Registering your SME investments on the PPSR could also allow a company to survive hardship and put you in a far better position to propose a viable deed of company arrangement (DOCA), should you seek one.
If you require further assistance with respect to registering your business on the PPSR or would like to know more, please contact our team of experienced lawyers and accountants by submitting an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange a tele-conference or appointment.