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in excess of $50,000.
“We have focused our PPSA approach
on companies rather than worrying about
individual customers who walk in the door.
“We consider those customers, cash
customers, low risk because an individual
is highly unlikely to go into liquidation the
weekend they’re hiring a trailer or a ladder
from us.
“When researching our PPSA options over
a nine month period, I prepared three to
four strategies and talked them over with
advisors and the senior management team .
It was an evolution over a period of months
and there were no shortcuts to the process.
“We had to really get in and understand
the legislation to design a system to comply.
“We have tried to make the process
easier on ourselves by taking the view all
our hire transactions are “indefinite” and
‘The PPSA and Coates Hire’...
continued from p26
covered by the PPSA (that is, longer than 90
days). This removes the worry of whether
each hire is covered by the legislation or
not.
“We don’t believe hire businesses need to
worry about registering each hire by hire.
“Consider the aim of the legislation.
The purpose of the legislation is to give a
third party a searchable register of what
liabilities a company has if trying to lend
or borrow money. The register is meant to
provide clarity for a financial institution so
any security interests can immediately be
seen.
“It hasn’t been an easy or cheap process
but if you design your system right, it is
straightforward.
“You couldn’t say the PPSA makes things
fairer but we’ve been dealt the cards and
now we have to play them.”
HR
You couldn’t say the PPSA makes things fairer
but we’ve been dealt the cards and now we
have to play them.”
Andrew Vlachos, Group Counsel and Company
Secretary for Coates Hire
28 | HIRE
AND
RENTAL
NEWS
| MAY 2012
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