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PPSR protection when leasing out goods longer term

A small construction vehicle, situated on a construction site.

Sandy has a fleet of bobcats she hires out all over town.

Sandy knows about the Australian Government’s PPSR – she knows of other hire businesses who’ve lost expensive equipment while out on longer term hire because they didn’t make a $6 PPSR registration.

For any new customers that are signing a longer term hire contract (more than two years), or if she thinks there’s a chance it might run for two years or longer, Sandy backs up the lease agreement with a PPSR registration.

Sandy also keeps a close eye on any bobcats that have been out on site for a while. As soon as she thinks there’s a chance the hire might tick over the 2 year mark, she makes a PPSR registration.

Registration costs $6 per customer, but she knows it gives her extra legal protection to seize her bobcats if her customer ends up going bust. A PPSR registration helps ensure Sandy is ahead of other creditors – even her customer’s bank.

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