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14 GROUND SUPPORT WORLDWIDE MARCH 2016 COVER STORY equipment is necessary to maintain that pris- tine level of safety. For example, the newest cargo loaders are being equipped with pressure sensitive sensors that will indicate if too much force is being used while docked against an aircraft. This may sound counter-intuitive, but new technology and new GSE can be a prestige investment, especially in the FBO arena. "Presentation of an FBO is frst and fore- most, well, I suppose behind safety, of course, which falls right in line with buying new equipment," Bennett says. "So you get safety and you get presentation. That's what the FBO needs to present. It's a frst-class operation dealing with private corporate jets." The need for these new, specifc technol- ogies is driving a number of trends forward in the equipment sales and fnancing sector. For example: X OPER ATING LE ASES TIMED WITH SPECIFIC CONTRACTS - Based on the equipment's long lifespan, ground handling equipment is easy to fnance in a way that coincides with specifc contracts. This is becoming increasingly popular among ground support companies. By arranging leases that align with specifc contracts, a ground support provider will typically enjoy a very low monthly payment throughout the term, followed by the ability to either purchase the equipment at a later date or walk away from the equipment free and clear if the contract is not renewed or a new contract is not yet in place. X INCREASED USED EQUIPMENT SALES – Companies that own outdated equipment with a need to get the newest technology are increasingly looking for support in fnding buyers of their older assets to make room for new equipment. Summit Funding can help ground handling companies locate these buyers and help provide fnancing or lease solutions to help move the old equipment out. "Used sales are typically driven by opera- tional demands and location," Banfeld says. "If you have a very high demand area, it's not feasible to put used GSE there. It wouldn't make a lot of sense due to the unpredictable uptime. Conversely, if a location has only fve to ten turns, it's hard to justify and warrant new equipment for that application." X MORE EQUIPMENT REFURBISHING - Most all ground service providers that already own a large feet of equipment try to maximize the life of their equipment. In order to do so, these companies need to refurbish their equipment to remain competitive and some of these new technology upgrades can be obtained during a simple refurbishment. For these situations, it's advantageous to fnance a refurbishment, which gives the company a stable monthly payment that they can expect, as opposed to a large up-front cost. This fnancing trend can help ground service providers to extend the life of equipment while also keeping their operating costs low. Today's ground service providers are increasingly looking toward solutions like the above in order to acquire newer advanced equipment, refurbish older outdated equip- ment, or get rid of older assets all together. New GSE Finance Options In addition to an increase in equipment leasing, leases that coincide with contracts, and refurbishment fnancings, there are other GSE fnance options of note for today's ground support providers. For example: X LONGER FINANCE TERMS - While traditional equipment leasing was thought of as a short-term option, GSE equipment is increasingly being fnanced over longer periods of time, often from 7 to 10 years. By extending the length of these equipment leases, companies are able to spread out their capital expenditures, resulting in more stable expenses that can contribute to more consistent proft margins. X SEASONAL PAYMENTS - Because some services within the ground support industry derive revenue seasonally, a new