Finance Options

To help you spread the cost of buying your new machine, we have teamed up with Klarna Bank AB to offer you a convenient and great value payment plan options. Chester Machine Tools act as credit intermediaries and offer credit products provided by Klarna Bank AB.

Klarna Bank AB is authorised by and regulated by the Financial Conduct Authority.

How do I apply for Finance?

There are a number of ways to sign up

  1. Apply by email and one of our sales staff will assist you with the entire process. e.
  2. Call our office direct on 01543 448940, and our sales team will send you the link to an application form which you can fill in and receive the finance decision in private, if you are approved then an order can be placed over the telephone.

However, you apply, it only takes a couple of minutes of form filling and you get an instant decision.

Klarna Bank AB will conduct the necessary credit checks and references in order to confirm your eligibility for the credit application.

How Much Can I Borrow?

6 months interest FREE - The minimum spend amount including deposit is £800 (For example, total purchase price of £800 with 25% deposit). The maximum loan amount is £25,000 inc. VAT.

12 months interest FREE - The minimum spend amount including deposit is £1500 (For example, total purchase price of £1500 with 25% deposit). The maximum loan amount is £25,000 inc. VAT.

Is A Deposit Required?

Yes. If your credit application is accepted, you will be required to pay a minimum 25% deposit, using a credit or debit card. The amount of the deposit is displayed in the credit summary throughout the credit application and on the credit agreement itself.

Some examples of the agreement include:

Order total: £800 (25% deposit of £200) – 6 months – 0% APR - Loan amount - £600 - £100 per month

Order total: £2000 (25% deposit of £500) – 12 months – 0% APR - Loan amount - £1500 - £125 per month

How Are My Monthly Payments Made?

Monthly repayments will be taken via direct debit from your bank account. Klarna Bank AB will inform you of the date that your repayments will commence. The first payment is typically due 30 days following the date of delivery of your order.

Which Products Can I Buy On Finance?

Any products listed on the Chester Machine Tools website or in identified store are eligible for finance.

What Is The Repayment Schedule?

You can arrange finance for 6 or 12 months.

How Long Does It Take To Apply?

The online application takes a few minutes to complete and successful applications are processed straight away.

What Are The Requirements For finance?

You must be over 18 years old and a permanent UK resident with 3 years address history. You must have a UK bank account capable of accepting direct debits. The goods must be delivered to your business address and the deposit must be paid using a credit or debit card.

How Long Before I Have To Start Repayments?

Klarna Bank AB will write to you to confirm the date that your repayments will commence. The first payment is typically due 30 days following the date of delivery of your order.

Can I Pay Off The Loan Early?

Yes, you have the right to repay all or part of the credit early at any time – you should contact Klarna Bank AB for details by phone (0844 880 6542), e-mail or letter.

Are There Any Other Charges?

If you fail to pay any amount you owe under the Credit Agreement by the date it is due, Klarna Bank AB may charge you interest on that amount, they may also levy additional fees – details of these can be found in the credit agreement. Standard Information and Regulatory Status of Klarna Bank AB Consumer Credit Service is provided by Klarna Bank AB. Klarna Bank ABis licensed by Financial Conduct Authority (Consumer Credit Licence: 0616240). Klarna Bank AB is regulated by the Financial Conduct Authority.  For more information please visit

How Do I Ask A Question About the Credit Agreement?

If you have a question, require further information or if there is anything you do not understand regarding the credit agreement, please call Klarna Bank AB on 0844 880 6542.

Can I Cancel the Credit Agreement?

You have the right under section 66A of the Consumer Credit Act 1974 to withdraw from the agreement without giving any reason before the end of 14 days (beginning with the day after the day on which the agreement is made or, if later, the date on which we will tell you that we have signed the agreement). If you wish to withdraw you must give the Klarna Bank AB notice in writing or by telephone or email. Please note that if you do give notice of withdrawal, you must repay the full amount of the credit without delay and in any event by no later than 30 days after giving notice of withdrawal. If you want to settle the loan after the 14-day cooling off period, you may do so but you will also have to pay interest accrued from the date the agreement was made until the date you repay it. If you wish to pay by debit card, please telephone the finance company. If you wish to pay by cheque, please post it to Klarna Bank AB. Please allow 10 working days from the day you post the cheque to allow time to process the payment.



We offer Lease Finance Options to suit your requirements.

The benefits of leasing include:

* Fixed rates for the duration of agreement 

* Major tax benefits - each payment is 100% tax deductible

* The Equipment can be earning your next payment from day one

* No need to have bank loans, overdrafts or pay cash

* fast application turnaround

* Spread the cost of your equipment purchase

* Protect existing lines of credit and preserve cash flow for business growth


The Tax Benefits of Leasing explained

Leasing converts a large capital expenditure into small monthly payments.  Hence the company has the profit-making equipment immediately and keeps their cash reserve available.

Rather than investing the precious cash reserves in depreciating assets, the company can use them to help increase profits.

Lease Rental is 100% Tax deductible

The main reason that the majority of companies lease rather than purchase equipment is that they use leasing as a method of reducing their tax bills.  This is because lease rental is 100% tax deductible, and all payments made for the equipment are written off against the company’s tax bill. For any profit making business, this means a substantial saving in the real cost of acquiring equipment by lease rental. This could mean a saving of between 20-40% of the lease payments, depending on the rate of tax you pay*.

Payments on qualifying leases are written off as direct operating expenses, rather than a debt or outstanding liability, thus reducing short term taxable income.

Any capital allowances are passed on to you, and lease payments can be offset against taxable profits. VAT can also be reclaimed on monthly payments. This status as a “lease” as opposed to a “liability” on a company’s balance sheet is something the banks like to see, which is why an operating lease can be attractive. For this reason, leasing is often referred to as ‘off balance sheet’ financing – a tremendous advantage to both large and small businesses.

Ownership at the end of the lease

Lease rental is just that, a rental or hire agreement. Title of the goods remains with the Lessor, which means the equipment does not show on the companies balance sheet, therefore not needing to be depreciated over a fixed period. If a broker provides the funding, they are the “third party” involved within the lease agreements. In effect, the broker buys the equipment from the supplier and then sells it on to the customer. This means that the customer can take full advantage of all the benefits of leasing but still owns it at the end.  (Tax loop-hole)

The disadvantage of buying equipment outright

The disadvantage to buying equipment out-right, is that the capital invested becomes a depreciating asset. This is an asset that’s value decreases over time.

The total amount that assets have depreciated by during a reporting period is shown on the cashflow statement, and also makes up part of the expenses shown on the income statement. The amount that assets have depreciated to by the end date is shown on the balance sheet.



How the tax advantages of leasing works – in numbers

You lease a machine that costs £5,000 + VAT, over a 3 year term.

The monthly payments would be £163.35 + VAT over 36 months

Total paid over the term of the lease £5880.60

19% tax can be reclaimed on the total lease payments over the 3 years, so a total of £1117.31.Therefore the net cost of the lease is £5880.60 - £1117.31 = £4763.29*

 *Your accountant will be able to provide more information. This information is provided for guidance only.


For more information or to have a chat about Chester's Financing Options - contact us on +44 (0)1543 448940 or email: