We recently assisted a client who loaned commercial equipment to customers of his wholesale supply business. One of his customers recently went into administration and held onto a number of machines that belonged to our client.
Problem 1 – there was no PPSR. Without a PPSR, proving ownership of the equipment was problematic and meant that the administrator claimed ownership of the items upon liquidation.
Problem 2 – there was no right to entry to re-claim the items, which meant that the landlord refused to permit our client to enter the premises to remove the items.
Problem 3 – despite being unable to access their items, the administrator claimed that recent payments should be considered as preferential payments, they received a claim back for these payments.
Solution – a $3.40 fee and a PPSR could have solved the majority of these problems. Setting up a PPSR structure for a business is a simple process and one that any wholesale supplier should be using. One of the biggest risks for small businesses is getting paid, and without having the appropriate structure in place the chances of this diminish. Contact us or give our team a call on 1300 023 782.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via Calendly or give us a call on 1300 1 VAULT (1300 182 858)
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