What Is the PPSR in NZ? (And Do You Need to Register?)
The PPSR, or Personal Property Securities Register, is New Zealand's public register of security interests in personal property such as stock, vehicles and equipment. If you sell goods on credit and want rights over them until you are paid, you generally need to register a financing statement against the customer. Registering is how your security interest becomes perfected.
What the PPSR Is
The PPSR is the public register where security interests in personal property are recorded in New Zealand. It is set up by the Personal Property Securities Act 1999 and run by the Companies Office. "Personal property" means things like stock, vehicles, machinery and other goods, plus intangibles such as receivables. It does not cover land.
A "security interest" is judged by what it does, not what it is called. Section 17 of the Act says it is an interest in personal property that in substance secures payment or performance of an obligation. That includes an agreement to sell goods subject to retention of title, a hire purchase agreement, a chattel mortgage, and a lease for more than a year.
A supplier records its interest by registering a financing statement. Anyone can then search the register before they lend to, or sell to, the same customer. That is the whole point: it tells other creditors who already has rights over what.
Why Suppliers Selling on Credit Use It
When you sell goods on credit, your customer has the stock and you have an invoice. If they cannot pay, you are one of many creditors. A registered security interest can put you ahead of the others for those goods. Three rules in the Act explain why registration matters:
- A perfected security interest has priority over an unperfected one in the same goods (section 66).
- A security interest is perfected when it has attached and a financing statement has been registered, or when you hold the goods yourself (section 41).
- A buyer who pays for goods takes them free of an unperfected security interest in them (section 52).
A security interest you take in goods you have just sold, to secure the unpaid price, is called a purchase money security interest (PMSI). It can rank ahead of an earlier general security, such as a bank's all-assets security over the customer, but only if you perfect it in time:
| Type of goods | When you must be perfected | Section |
|---|---|---|
| Inventory (stock the customer will resell) | By the time the customer takes possession | 74 |
| Other goods (equipment, tools, fit-out materials) | Within 10 working days of the customer taking possession | 73 |
Illustrative example: a Hamilton garden supplies wholesaler sells $20,000 of stock to a retailer on terms of the 20th of the following month. The retailer's bank already holds a registered security over all of the company's assets. If the wholesaler registers a PMSI before the stock is delivered, it can rank ahead of the bank for that stock. If it never registers, the bank's registered interest comes first and the wholesaler is an unsecured creditor for the $20,000. This is an example, not a prediction of how a court would rule.
Do You Need to Register? A Quick Guide
Nothing in the law forces you to register. The cost of not registering is losing priority when it matters. This is how it plays out for common situations:
| Your situation | Register? | Why |
|---|---|---|
| Selling goods on credit terms (Net 30, 20th of the month following) with a retention of title clause | Yes | The clause creates a security interest that only protects you well once it is perfected |
| Selling goods cash on delivery or paid upfront | Usually no | You are not left exposed once you have been paid |
| Supplying services only | Usually not useful | A registration needs goods or other property to attach to |
| Leasing equipment for more than a year, or consigning stock to a retailer | Yes | Both count as security interests under section 17 even if no money is owed yet |
| A small one-off sale to a customer you know well | Your call | Weigh the registration fee and effort against the value of the goods |
The paperwork matters as much as the registration. A security interest attaches when you have given value, the customer has rights in the goods, and the security agreement is enforceable against third parties (section 40). In practice that means a signed credit application or terms of trade with a clear security clause. See retention of title clauses and why a clause alone isn't enough.
How to Register on the PPSR
- Step 1: get the agreement right. Make sure your credit application or terms of trade contain a security clause signed by the customer.
- Step 2: confirm the customer's exact legal name. Use the name on the Companies Register, not a trading name. A wrong or misspelt name can make a registration ineffective.
- Step 3: search the PPSR. See who else has registered against the customer, such as a bank or another supplier.
- Step 4: register a financing statement on the PPSR website (ppsr.companiesoffice.govt.nz). Describe the goods, choose the collateral type and pick a registration period.
- Step 5: register before delivery, keep the confirmation with the customer file, and diarise the end of the registration period. A registration lapses if it is not renewed.
Registration has a fee that depends on the period you choose. Check the current fee on the PPSR site before you start.
What the PPSR Is Not
- Not a credit check. A PPSR search shows security interests registered against a business, not whether it pays its bills. For that, see how a business credit check works in NZ.
- Not a debt recovery tool. Registering gives you priority over particular goods. It does not collect an overdue invoice. For that, see what to do when a customer doesn't pay.
- Not just for banks. Any NZ supplier selling goods on credit can register.
For the wider picture on extending credit safely, see the Business Credit guide and what trade credit is. This article is general information, not legal advice. For your own terms of trade or a specific situation, speak to a New Zealand lawyer.
Frequently Asked Questions
What does PPSR stand for in NZ?
PPSR stands for Personal Property Securities Register. It is the public register, run by the Companies Office, where security interests in goods and other personal property are recorded under the Personal Property Securities Act 1999.
Is registering on the PPSR compulsory?
No. Nothing forces you to register. But an unregistered security interest generally ranks behind a registered one, so a supplier that sells on credit and does not register usually ends up an unsecured creditor if the customer cannot pay.
When should a supplier register on the PPSR?
Before the goods are delivered. To rank ahead of a customer's earlier general security over stock, a purchase money security interest in inventory must be perfected by the time the customer takes possession. For other goods the deadline is 10 working days after the customer takes possession.
Does the PPSR show whether a business pays its bills?
No. It shows security interests registered against a business, such as a bank's security or another supplier's retention of title. Payment history and defaults come from credit reporters, not the PPSR.
Do I need a lawyer to register on the PPSR?
You can register yourself on the PPSR website. The part worth getting checked is the security clause in your terms of trade and credit application, because a registration only helps if the agreement behind it is sound. Many suppliers have a lawyer review those once.
