Every business should give consideration to developing a policy of registering customers on the Personal Property Securities Register so that the business has some protection in the unfortunate event that a customer has an insolvency problem.
Businesses which are undertaking contracts with other organisations that relate to services being provided over an extended period of time and the business receiving progress payments can also incur significant problems if their customer has had a liquidator, trustee in bankruptcy or administrator appointed in that the liquidator etc, could issue a claim relating to alleged preferential payments.
If the business has registered that customer on the Personal Property Securities Register there is very little opportunity for the liquidator to be able to make a successful claim against the business.
If your business has placed assets on someone else’s premises and an insolvency event occurs, this can also be a considerable problem if you have not registered that transaction on the Personal Property Securities Register.
Call us at Kennedy Barnden if you think registering your customers and other contacts on the Personal Property Securities Register could protect your business.