If you’ve borrowed for a business, bought a vehicle on finance, or opened a trade account with a big supplier, there’s a good chance your business already appears on the Personal Property Securities Register. Many owners don’t know it exists until a lender, buyer or liquidator mentions it. Here’s what it is and why it matters.
What is the PPSR?
The Personal Property Securities Register is an online public register run by the Companies Office. It records security interests in personal property — anything that isn’t land or buildings. That includes:
- Motor vehicles, trucks, trailers and machinery.
- Stock and inventory.
- Accounts receivable (money owed to the business).
- Equipment, tools, computers.
- Intellectual property and other intangible assets.
A security interest gives a lender or supplier a legal claim over the asset until the debt is paid. Registering it on the PPSR gives them priority — generally, earlier registrations rank ahead of later ones.
Key terms in plain English
- Financing statement — the registration itself: who the debtor is, who the secured party is, and what the collateral is.
- Secured party — the lender, financier or supplier with the security interest.
- Debtor — the person or business that owes the money.
- Collateral — the property subject to the security interest.
- Purchase money security interest (PMSI) — a special, higher-priority interest for a lender or supplier who finances the purchase of a specific asset, if registered within the required timeframe.
- Financing change statement — used to amend, renew or discharge a registration.
Registrations can last up to five years and can be renewed.
What is a general security agreement?
A general security agreement (GSA) is a contract where a business gives a lender security over its personal property. A GSA commonly covers all present and after-acquired personal property — sometimes written as “AllPAP”. That means everything the business owns now and anything it acquires in future.
Some GSAs are narrower, covering only specific assets or excluding certain classes.
Lenders commonly take GSAs on:
- Unsecured business loans and lines of credit — “unsecured” meaning no property mortgage, but the lender may still register a GSA over business assets.
- Bank business facilities.
- Trade credit from major suppliers (often with retention of title clauses too).
Why does it matter to you?
1. It affects future borrowing. If one lender already holds an AllPAP registration, a second lender taking security over the same assets will usually rank behind. Some lenders will want the existing registration removed or subordinated.
2. It affects selling assets. Selling assets covered by a security interest may require the secured party’s consent.
3. It affects selling the business. Buyers search the PPSR. Registrations must usually be discharged at settlement.
4. It lingers. Registrations don’t always disappear when a loan is repaid. An old, undischarged registration can confuse or delay a new lender.
Check your own business
Search the PPSR for your business by company name or number. Look for:
- Registrations you recognise — current lenders, vehicle finance, key suppliers.
- Registrations for debts you’ve already repaid. Ask the secured party to discharge them.
- Anything you don’t recognise. Query it.
Doing this before you apply for funding saves awkward questions later.
Buying second-hand? Search first
Before buying a used vehicle, machine or other asset — privately or from a business — search the PPSR by VIN, plate or the seller’s name. If the asset is subject to someone else’s security interest and it isn’t cleared, you could end up with an asset a financier can claim. Our answer on funding equipment or a vehicle covers this in context.
Buying a business? Search first
If you’re buying an existing business, search the PPSR for the vendor’s company. Your lawyer will make sure any registrations over the business assets are released at settlement.
PPSR vs property mortgages
| PPSR | Record of title (LINZ) | |
|---|---|---|
| What it covers | Personal property: vehicles, equipment, stock, receivables | Land and buildings |
| Security document | GSA or specific security agreement | Mortgage |
| Who runs it | Companies Office | Land Information New Zealand |
| Typical business use | Unsecured loans, asset finance, trade credit | Property-secured business loans |
A property-secured business loan from $20,000 to $1m is secured by a mortgage over New Zealand property. Depending on the lender, a GSA may be taken as well — your specialist will tell you exactly what security each option involves before you commit.
Questions to ask a lender about a GSA
- Will you register a GSA, and over all assets or specific ones?
- Will it rank behind or ahead of existing registrations?
- Do you need existing registrations discharged or subordinated?
- Will you discharge the registration promptly when the loan is repaid?
Our full list of questions to ask any lender covers the rest.
Talk to someone
If there are registrations on your business you’re unsure about, mention them on the first call. Ring the Hotline, or request a call back.
Ready when you are. Ring 09 875 4577 or request a call back — a lending specialist will talk it through.