NZ Company PPSR Guide: Personal Property Securities for New Business Owners

Most new NZ company directors have never heard of the Personal Property Securities Register. They find out it exists when a customer goes into receivership and a secured creditor gets the goods back — goods the new company supplied on credit and has never been paid for. By then it is too late to register.

This guide explains what PPSR is, when you need to use it, and how to protect your business from day one.

What is the PPSR?

The Personal Property Securities Register (PPSR) is a public online register administered by the New Zealand Companies Office. It records security interests in personal property — that is, assets other than land. "Personal property" in this context means goods, equipment, vehicles, accounts receivable, intellectual property, and other moveable assets.

A security interest is a legal claim over property that secures an obligation, typically a debt. Lenders, suppliers, and lessors use PPSR registrations to protect their position if the person or company who owes them money or holds their property becomes insolvent.

When does a new NZ company need to use PPSR?

If you supply goods on credit: If you sell products and allow customers to pay later (30-day terms, for example), you should register a Purchase Money Security Interest (PMSI) against those goods before delivery. If your customer goes into receivership without paying, a PMSI gives you priority over other creditors to recover the specific goods you supplied.

If you rent or lease equipment: If you own equipment that you lease to others — forklifts, scaffolding, construction equipment, vehicles — register a security interest to protect your ownership. Without it, a receiver might treat your equipment as an asset of the insolvent business.

If you take a security interest over a customer's assets: Lenders and professional services firms sometimes take a security interest over a customer's assets as collateral. Register that interest on PPSR to establish your priority date.

If you buy a business or significant assets: Before purchasing a business or expensive equipment, search PPSR for existing security interests. You may be acquiring an asset that a secured creditor has a prior claim over.

How to register a PPSR security interest

Registrations are made online at ppsr.govt.nz. The fee is NZ$3.22 per financing statement for a one-year registration. You will need the debtor's details (their company number if they are a company), a description of the collateral, and details of the secured party (you).

For Purchase Money Security Interests in goods, the registration must be made before or within a very short time of the goods being delivered to the customer. Late registration loses the PMSI priority.

PPSR and your relationship with your bank

When you take out a business loan, your bank will almost certainly register a security interest over all your company's assets on PPSR. Before granting credit to customers or taking on equipment finance from suppliers, check whether your bank's general security agreement restricts this. Most do not, but it is worth confirming.

Do I need a lawyer?

For straightforward supplier credit arrangements, the PPSR online registration tool is manageable without legal help. For complex arrangements — security over intellectual property, all-asset debentures, or PPSR in the context of a business acquisition — a commercial lawyer should review the documentation. Find a local commercial lawyer through FreshFirms.

Where to get help

The New Zealand Companies Office has free guidance at companiesoffice.govt.nz/ppsr. MBIE also provides online tutorials. For anything complex, a commercial lawyer or accountant who works with new NZ companies can advise on the right structure for your situation.

Note for service providers: Lawyers, accountants, and financial advisors who help new NZ companies navigate PPSR and other regulatory requirements can use FreshFirms to find those companies at the moment of registration — before they have found their advisors.