Tips for SMEs from Australia’s leading insolvency, business, trade finance and credit experts
Insolvency firms, business advisors, trade finance providers and trusted source of data intelligence, Veda, are warning small to medium enterprises (SMEs) about the consequences of not understanding the Personal Property Securities Register (PPSR). Not having property interests registered with the PPSR can be devastating if a customer or related entity goes into administration or liquidation.
Carol Chris, General Manager, Commercial & Property Solutions at Veda, said every year more than 25,000 Australian businesses become insolvent. “SMEs are the backbone of the Australian economy, estimated to account for 69 per cent of the total Australian workforce and 57 per cent of total business income earned during 2011–12. Yet SMEs are not as well-resourced as larger enterprises to manage business risks. So for SMEs, utilising the PPSR is crucial to assess and minimise the credit risk of a prospective customer and recover debt if they don’t pay or become insolvent,” Ms Chris said. “SMEs that lease goods, lend money or sell on terms, such as retention of title, need to know how to make the PPSR work for their business.”
For further PPSR tips a series of white papers are available for download on the Veda website.
Source: Veda Press Release