Glossary
General security agreement (GSA)
Security taken over all of a company's present and future assets, registered on the PPSR.
In plain English
A general security agreement gives a lender security over everything a company owns now and everything it acquires later: stock, plant, debtors, contracts, intellectual property. It is registered on the Personal Property Securities Register, so anyone searching can see it.
It is the standard security on commercial lending to a company, and it sits alongside rather than instead of any property mortgage or personal guarantee.
Why a lender cares
The practical consequence is that a second lender cannot take meaningful security afterwards, because the first GSA already covers the assets. That is why the order facilities are put in place matters, and why consolidating to one lender is often less about rate than about who holds the GSA.
Sources: PPSR
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