What a GSA covers
A GSA typically captures a company's plant and equipment, inventory, book debts and receivables, cash, intellectual property, contractual rights and shares in subsidiaries. It is registered on the PPSR, which establishes the lender's priority against other secured parties.
It does not capture real property — that requires a registered mortgage over title.
Why lenders take one anyway
Even where a mortgage over property is the primary security, a GSA gives the lender control if things deteriorate: it can appoint a receiver to the company, prevents other financiers taking priority over the business assets, and reaches proceeds and receivables that a mortgage cannot.
On development and trading transactions this matters. If a builder or developer stops paying, the ability to step in over contracts, plant and receivables can be the difference between an orderly completion and a stalled site.
What the borrower should understand
A GSA is broad by design. It can restrict granting other security, selling major assets or changing the business without consent, and it can conflict with existing equipment or invoice financiers who already hold PPSR registrations. Directors are also usually asked for personal guarantees alongside it.
Before signing, get legal advice on the scope of the security, any negative covenants, how existing PPSR registrations interact, and exactly what triggers enforcement.
Key points
- A GSA covers a company's present and future personal property, not real estate.
- It is registered on the PPSR to establish priority.
- It typically supports, rather than replaces, a property mortgage.
- Scope is broad — obtain legal advice before signing.
Frequently asked questions
Is a GSA the same as a personal guarantee?
No. A GSA is security over company assets; a personal guarantee is a personal promise by a director to pay if the company does not. Lenders often take both.
Can I have two GSAs?
Yes. Multiple secured parties can register, with priority determined by PPSR registration order and any deeds of priority.
Does a GSA affect my equipment finance?
It can. Existing financiers may hold prior registrations or require consent, so disclose them early.