Assistance for Creditors

Are you the creditor of a business facing financial difficulties and need assistance?

Are you a creditor?

You are a creditor if a company or business you are dealing with owes you money.

Most often, a creditor of a company is owed money because they have provided goods or services, or made loans to the company.

There are generally two types of creditor:

• a secured creditor
• an unsecured creditor.

A secured creditor is someone who has a ‘charge’ over the company’s assets, such as a mortgage, which secures the debt owed by the company.

An unsecured creditor is a creditor who does not have a charge over the company’s assets.

Is the company you are dealing with facing financial difficulties?

Signs that a company you are dealing with is in financial trouble include:

• continued late payment of invoices
• dishonoured payments
• issuing of post-dated cheques.

What should you do if you are a creditor of a company facing financial difficulties?

You should first raise your concerns with the company.

At this point, you may wish to review your ongoing trading relationships with the company.

If this fails to resolve the issue, you should seek professional advice on your options.

What is the Personal Property Securities Register (PPSR)? How can it protect your interest in personal property?

The PPSR is a single-point-of-contact register for consumers, businesses and the finance industry.

It can assist creditors to register their interest in an item of personal property.

For example:

• finance companies when they provide loans on the basis they receive a security interest in an item of personal property can register that interest in the property on the PPSR
• business operators who sell personal property on credit, consignment or on retention of title arrangement can register their interest on the PPSR
• consumers who are about to purchase personal property, such as valuable second-hand goods, can search the PPSR before buying, to make sure that the property is free of a security interest.

 

Do you need more information?

• Voluntary administration: a guide for creditors (ASIC: Information Sheet 74)
• Liquidation: a guide for creditors (ASIC: Information Sheet 45)
• Receivership: a guide for creditors (ASIC: Information Sheet 54)
• Approving fees: a guide for creditors (ASIC: Information Sheet 85)
• External administration: deeds of company arrangement involving a creditors’ trust (ASIC: Regulatory Guide 82)
• Independence of external administrators: a guide for creditors (ASIC: Information Sheet 84)
• Personal Property Securities Register (PPSR)