Quick answer
A general security agreement (GSA) is a contract in which a business gives a lender security over its personal property, usually all present and after-acquired property. That covers things like equipment, vehicles, stock, receivables and bank balances, but not land. The lender registers the interest on the Personal Property Securities Register (PPSR), so it ranks ahead of later claims if the business fails to repay.
Key points
- Covers business personal property such as equipment, stock and invoices, not real estate
- Usually registered on the PPSR under the 'all present and after-acquired property' collateral class
- Common with unsecured fintech loans, bank facilities and invoice finance
- A second lender may need a priority deed with the first GSA holder before it will fund
Lenders shorten it to GSA, and you’ll find it buried in the security section of most business loan contracts. In practice, signing one gives the lender a registered claim over what the business owns, other than land, until the debt is repaid.
What does a GSA actually cover?
The Personal Property Securities Act 2009 sets out how security over “personal property” works in Australia. Personal property means almost anything that isn’t land or a building, so a GSA can reach:
- plant, tools, machinery and vehicles
- stock on the shelves and raw materials
- unpaid customer invoices (receivables)
- money in business bank accounts
- intellectual property, licences and some contract rights
Most GSAs are written over all present and after-acquired property, often shortened to ALLPAAP. That last part matters: anything the business buys after signing is caught too, without new paperwork. The older idea of a floating charge over a company’s assets has largely been replaced by this structure.
A GSA can also be limited to named assets, but the all-assets version is far more common for working capital and term loans.
Why lenders ask for one
Signing one hands the lender a security interest that it can register on the PPSR. Registration is what gives it priority. If the business fails and a liquidator sells the assets, a properly registered secured party is generally paid ahead of unsecured creditors.
That’s why you’ll see GSAs attached to unsecured business loans from fintech lenders. With no real estate standing behind those loans, the lender takes a GSA plus a director guarantee for whatever protection it can get. Banks take them with overdrafts and term facilities. Invoice financiers rely on them to secure the receivables they fund.
Timing matters for the lender too. A security interest granted by a company generally needs to be registered within 20 business days of the agreement, or it risks failing if the company enters administration or liquidation soon after.
How a GSA affects your next loan
A GSA doesn’t stop you borrowing again, but it shapes how the next lender approaches you. Every new lender searches the PPSR. When it finds an existing all-assets registration, it knows someone else ranks first.
A worked example. A Newcastle joinery company takes a $150k unsecured loan from an online lender, which registers a GSA over all its assets. Eight months later the owner wants a $90k edge-bander on equipment finance. The equipment financier can usually rank first over that specific machine, because a correctly registered purchase money security interest (finance used to buy the asset itself) generally takes priority over an earlier all-assets GSA. The online lender keeps its claim over everything else.
Now suppose the same company wants a second working capital loan from a different lender. That lender can’t get first-ranking security over the general assets, so it may ask the first lender to sign a priority or subordination deed, or simply decline. Clearing or refinancing the first loan is sometimes the cleaner path.
Want to know how an existing PPSR registration affects what you can borrow? Tell us what’s already in place and a specialist will talk it through.
GSA compared with other security
| Security type | What it attaches to | Where it’s recorded |
|---|---|---|
| General security agreement | Business personal property | PPSR |
| Registered mortgage | Land and buildings | State land registry |
| Caveat | An interest in land | State land registry |
| Personal guarantee | You, personally | Not registered; a contract |
Related terms
Collateral, secured creditor, subordination and fixed charge all connect to how a GSA ranks against other claims.
Weighing up finance with a GSA attached?
A GSA is standard paperwork, but the existing registrations on your business decide which lenders will step in next and on what terms. Send us the basics and we’ll build them into our thinking from the outset. The form takes roughly a minute and has no effect on your credit file. It goes to one person here who reads it and phones you, not out to a list of funders. Note any current loans and their lenders accurately, because that’s exactly what decides the right fit.
Frequently asked questions
Does a GSA mean the lender can take my house?
Not through the GSA itself. A GSA covers personal property, which under the Personal Property Securities Act excludes land and buildings. A lender would need a mortgage or caveat over the property, or a personal guarantee from you, to reach your home.
Why does an 'unsecured' business loan come with a GSA?
Many lenders call a loan unsecured because there's no property or specific asset behind it. They still often register a GSA over the business's assets, plus take a director guarantee, so they have some protection if the business can't pay.
How do I find out if my business already has a GSA registered against it?
Search the PPSR using your company's ACN or your ABN. The results list each registration, the secured party and the collateral class. It's worth doing before you apply for new finance so there are no surprises.
Does the GSA come off when I repay the loan?
It should. Once the debt is cleared, the secured party ends its PPSR registration. If a registration lingers after payout, ask the lender in writing to remove it, because a later lender will see it in their search.
Can I sell stock or equipment while a GSA is in place?
Selling stock in the ordinary course of trading is usually allowed. Selling major equipment or the whole business normally needs the secured party's consent, so check the agreement before you agree a sale.