Also called: GSA, All-assets security
General security agreement
A general security agreement is a document giving a lender security over all present and future assets of a business, rather than over a single named item. It is registered on the PPSR and is common on larger commercial and working capital facilities.
What is a general security agreement?
A general security agreement is a document giving a lender security over all present and future assets of a business, rather than over a single named item. It is registered on the PPSR and is common on larger commercial and working capital facilities.
Example
A lender advancing a $400,000 secured business loan takes a GSA covering plant, stock, debtors and goodwill.
Why it matters
A GSA can block another lender from taking security later, so it affects your ability to raise further finance.