If you are looking to purchase equipment from a private vendor, there are certain checks that should be completed to ensure you gain clear title to the asset.
As your trusted Finance Broker, we complete several checks to ensure that the equipment you are purchasing is from a legitimate and reliable source. We also ensure that the vendor has the legal right to sell the equipment, by requesting proof of ownership from them.
To ensure you receive clear title, we also carry out a Personal Property Securities Register (PPSR) search. This search allows us to see if the equipment is currently encumbered (e.g. by a lender) or on hire from a third party. It also allows us to see the equipment history on the National Exchange of Vehicle and Driver Information System (NEVDIS). NEVDIS is a register of information recorded against specific identifying numbers, e.g. we can see if the equipment was ever recorded as written off or insurance damaged. We will work to request the removal of any encumbrances or on hire interest noted on the asset on your behalf.
A PPSR registration lets others know that you are claiming a security interest in the goods when you are selling on retention of title terms or when hiring, renting or leasing out goods for more than two years.
This is particularly helpful for businesses and sole traders in areas such as construction who frequently sell, lease or hire out plant and machinery, either separately or as part of work contracts.
With a valid PPSR registration, you are in the best position to retrieve your goods, or recoup their value back, if your customer doesn’t pay or goes out of business.
Remember: A retention of title clause (indicating that title remains with you until goods are paid for in full) in your contract or invoice no longer protects you on its own. Make sure you back up your contracts by registering your interest on the PPSR.
Are you looking to finance your next piece of equipment? We can assist you with your equipment finance needs.
Please feel free to reach out to one of our equipment finance brokers on 07 4639 1011 or submit an enquiry.
Phone: 07 4639 1011 or submit an enquiry
LinkedinSource: Australian Financial Security Authority
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.