About Leasing..

Leasing can give you significant benefits that you do not get when you own your equipment,

 It’s an excellent way to reduce costs, improve cash flow, and avoid equipment

obsolescence, free up capital and maximize tax advantages. This is why leasing is one of the

fastest-growing financial services.

By leasing instead of buying, you can realize business, financial and tax advantages.

If you don’t find the information you’re looking for, or if you’d like to talk to one of our leasing

experts, please contact us and we’ll be happy to help you decide if leasing is the right business

approach for your business.

Comparing Leases:

When you’re looking into which company to choose as your leasing partner, comparing only the

rates being offered may not give you enough information to make the best decision. Before you

can truly analyze rate differences, there are a few other areas you should assess that will help

you determine the leasing solution that’s right for you.

Equipment Purchase:

If you would like to purchase the equipment at the conclusion of the agreement, make sure your

leasing terms mesh with your financing objectives. While not all leasing companies offer purchase

options, JMV provides a range of options tailored to your needs.

Flexibility of the Terms:

Leasing offers the flexibility that sets it apart from other forms of financing. You typically can

adjust the length of term, frequency of payments, and the residual value of the equipment at

lease end. JMV offers flexibility on all of these terms to fit your financial needs and how you

expect to use the equipment.

Additional Costs:

Some leasing companies include peripheral costs in the lease price, while others add on these

costs later. Be sure to ask your provider how much of the costs associated with installation,

shipping, computer software, licensing or other expenses can be included in the lease contract.

At JMV, we can build a portion of these added costs into your lease to reduce your up-front costs.

Type of Lease: 

Leases may be structured so that equipment does not appear on your balance sheet, which can

improve your business’s financial ratios. For tax purposes, true leases can be treated as a

business expense, just as an electric bill is and the entire lease payment can be tax deductible.

Lease purchase programs provide tax benefits that mirror those for owned equipment. JMV offers

all types. You should consult an accountant for advice on which type of lease is right for you, and

we'll work closely with your tax consultant to identify the best options for your business.

Financial Strength of the Leasing Partner:

Leasing companies with strong financial capacity can access funds at lower rates, which

translates into competitive lease rates for you. With almost $1.5 Billion in leases outstanding,

JMV has the financial strength to meet your financial objectives. We can fulfill all of your leasing

needs – no matter how large or complex.

Industry Expertise:

Any company that works closely with your industry will have a deeper understanding of your

challenges as well as the specifics of the equipment and facilities you need. JMV specializes in

agriculture, forestry, manufacturing, construction, industrial and other businesses that serve

America. From grain storage facilities to bucket trucks to processing equipment, and everything

between, our experts can help you find exactly what you need.

Tax Advantages:

In addition to the many business and financial benefits you can gain by leasing, such as finding

the exact equipment you need and reducing your maintenance costs, one of the best reasons to

lease equipment is that it can reduce how much you pay in taxes.

Expense Deduction Benefits:

With owned equipment, you’re allowed to deduct depreciation and interest expenses from your

taxable income, but not principal payments. And the depreciation deductions follow a schedule

set by the IRS. For example, you can only take a half-year’s depreciation deduction for an asset

in the first year you purchase it and place it in service.

With a lease, you can deduct your entire lease payment as an expense, which will allow you to

write off expenses quicker. This shorter period means a larger deduction each year, lowering your

taxable income and decreasing your taxes.

Extra Benefit for Year-end Acquisitions:

If you’re planning on acquiring a lot of equipment at the end of the year, leasing can be an

appealing alternative to purchasing because of IRS depreciation deduction rules. When more

than 40% of your equipment is purchased during the last quarter of the tax year, a “mid-quarter

convention” is applied and you can only deduct 1-1/2 months of depreciation for the equipment

bought in the last quarter, even if you’ve been using it for the full three months. However, when

you lease the equipment in the last quarter; you can deduct your lease payments as a business

expense for the tax year.

Choosing the best lease option:

With the right kind of lease, you can simply deduct your lease payment as an operating expense

and avoid the depreciation deduction issue.

Tax codes and decisions can be complex, so you should always follow IRS tax guidelines and

consult with your accountant about the best financing alternative to lower your taxes.

Whether you're a local or regional agricultural cooperative, a large multinational food company, a

medium sized forestry company or a small communications company, JMV can tailor financial

services to meet the needs of your unique business. And that includes everything from financing

to long-term lending programs.

Unlike other banks, we offer a wide variety of flexible financing structures. JMV has an

unequaled track record of service to agricultural and forestry. The majority of our agribusiness

customers have worked with us for years. JMV has supported rural infrastructure cooperatives

and companies for decades. We have a comprehensive understanding of the unique demands

and challenges of these critical industries, which enables us to develop effective financial

solutions to meet their changing and growing business needs.

Short-Term Financing:

JMV offers loans to finance current or seasonal assets, inventories, accounts receivable,

commodities and other short-term needs. The loans usually mature within 12 to 18 months.

Variable and fixed rates are available. Many of JMV’s established customers maintain lines of

credit for seasonal needs like inventory loans and operating capital financing. Inventory loans

include financing for everything from manufacturing equipment, skid steer loaders, dump trucks,

sod farm fixtures and everything in between. Asset-based loans can be tailored for many different

purposes. Operating capital financing is usually used to meet periodic cash-flow shortfalls or to

cover immediate cash needs.

Intermediate- and Long-Term Financing:

JMV also offers loans to meet your long-term business objectives including the construction of

new facilities, remodeling or expanding existing facilities, land or equipment purchases, or to

finance mergers and acquisitions, long-term assets and working capital. Fixed and variable rates

are available, with the flexibility to meet your specific business objectives. Our loan maturities

typically vary by industry to correlate with their differing financing needs. Working closely with

insurance companies and investment banks also allows us to provide competitive long-term

private placement financing.

Capital Markets and Syndications:

For larger financing arrangements, and when it best serves our customers, JMV works with

commercial and investment banks, finance companies, institutional loan funds and other

institutions to syndicate loans, and often acts as an agent for these transactions.

All Industries Served..

Agriculture and Agribusinesses:

Since JMV was established more than 20 years ago, we have delivered the benefits of leasing to

agricultural producers and agribusinesses. Today, while we’ve expanded our offering to meet the

changing needs of other rural businesses, more than 60 percent of our business dedicated to

agricultural producers and agribusinesses. In short, our sales and credit staff speaks your

language, from equipment to commodities. We understand your industry’s cycles and trends, and

we remain committed to you for the long term, through good times and bad.

No matter what type of agriculture you're involved in, or what stage of the food production

process, we can provide the equipment you need – tractors, combines, farm implements, dairy

equipment, above-ground irrigation systems, farm trucks, processing and packaging equipment,

and material handling equipment. We also provide leases for buildings needed for confinement or

processing businesses. Whether your business is hogs, broilers, turkeys, eggs, dairy, fruit or

potatoes, you can more efficiently handle production in buildings outfitted with the latest

technologies.

Regardless of the type of lease you choose, or whether you work directly with us, we’ll work with

you to make sure that you have access to the best equipment to meet your needs.

Construction & Forestry Companies:

JMV has helped many large and small companies take advantage of the benefits of leasing.

JMV leases a wide range of equipment that is essential in the business operations of our

construction customers, including:

· Fleet vehicles or other transportation equipment

· Right-of-way and substation maintenance equipment

· Equipment including bucket trucks, trenchers and backhoes

Regardless of the type of lease you choose, JMV will work with you to make sure that you have

access to the best equipment to meet your needs.

JMV works with many forestry companies to help them take advantage of the benefits of leasing.

Our experienced team of experts understands the financing and leasing needs of the large

forestry operation as well as the small time logger.

JMV leases a wide range of equipment that is essential in the business operations of our forestry

customers, including:

Special Considerations for All Other Industries:

JMV offers a wide variety of lease terms and structures, customized to fit your individual needs.

The type of lease you select may depend on the structure of your business.

· Are you able to use the tax benefits of accelerated depreciation? If not, you may be able

to transfer the benefits to JMV for a lower rate.

· How will leasing affect your company’s cost separation revenues? Generally, the impact

will be minimal for companies that are unregulated, or are under price caps or NECA

average schedules.