1. Personal Guarantees
Businesses often extend credit to Customers without any security whatsoever. Your bank would not extend that sort of credit to your business without security in the form of a personal guarantee and/or Mortgage over real property, so why should your business offer credit to your Customers without security.
Personal guarantees should ideally be obtained whenever your business makes a Contract with a company or a sole trader. The Guarantees should be sought from the Directors of the company or the spouse of the sole trader, if any.
2. Real Property Security
Security over real property (land and buildings) owned by the Customer and/or any Guarantor. You will have the right to register a Caveat over the title to any real property owned solely or jointly by the Customer or any Guarantor in the event of a default by the Customer under an Agreement.
3. Retention of Title to Goods
If your business supplies goods, your Terms & Conditions of Trade can include a “Retention of Title” Clause entitling you to reposes goods that have not been paid for in the event of a Default. Following the introduction of the Personal Property Securities Act, a Security Interest must be registered on the Personal Property Securities Register for the retention of title clause to be effective in providing security (see below).
4. Personal Property Security
Security over personal property within the meaning of the Personal Property Securities Act 2009 (Cth), subject to registration of a Security Interest on the Personal Property Securities Register