Quick answer: A GSA can give a lender a security interest over broad business personal property such as equipment, stock and receivables, depending on the agreement. A PPSR registration publicises that security interest. It is different from a mortgage over land and different again from a director guarantee.
Questions business owners commonly ask
- The bank says it only needs a general charge over the business — what does that mean?
- Can the lender take stock and debtors under a GSA?
- Does a GSA put my house at risk too?
A GSA is about business personal property
The PPSR is used for security interests in personal property, not land. A GSA can be drafted broadly enough to capture present and after-acquired company assets, but the executed document defines the collateral.
PPSR registration matters
A secured lender commonly registers its interest on the PPSR. Before a refinance or second facility, search the company and understand what is already registered.
Priority can affect the next lender
Equipment financiers, trade suppliers and another bank may already have registrations. A new lender may require releases, priority arrangements or limitations before settlement.
GSA and personal guarantee are separate
The company can grant a GSA while directors separately guarantee the debt. Do not assume that business-asset security removes personal guarantee risk.
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General information only. Business lending policy, security, guarantees, pricing, covenants and documentation vary by lender and transaction. This is not legal, tax or accounting advice.
Frequently asked questions
What does GSA stand for?
General Security Agreement.
Is a GSA registered on PPSR?
The security interest arising from it is commonly registered on PPSR.
Does it cover land?
PPSR generally concerns personal property, not land or buildings.
Can two lenders hold security?
Yes, but priority and consent arrangements matter.
Should I check PPSR before borrowing?
It is particularly useful for refinances or multiple-lender structures.
Sources and verification
Related business finance guides
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