Firms are being encouraged to replace outdated, inefficient equipment and save thousands of pounds on their energy bills.

The Carbon Trust has launched a campaign titled the Big Business Refit, offering £100 million in interestfree loans to help SMEs modernise their machinery.

The money is being given on a first-come-first-served basis.

Businesses can get between £3,000 and £400,000 to replace almost any old equipment, from heating and lighting to plant machinery.

The campaign was launched last week at Brighton Sheet Metal in The Hyde business park, Brighton, which has already taken advantage of a loan from the Carbon Trust.

The company borrowed £31,000 to replace a gas-fired degreasing system with a modern, electricity powered system.

Managing director Bill Taylor said: “As a result, we are saving more than £13,000 a year on our energy bills.

“Getting the money was a lot easier than we expected.

“There was a lot of scaremongering when the scheme was announced about the money being there, saying it would be hard to get your hands on it, but we have proved that wrong.”

Pierre Dufour, head of loans at the Carbon Trust, said: “Encouragingly, Brighton and Hove is in fifth place in terms of take-up of the loans funds across the UK in the first six months of 2009.

“But inquiries about the limited loans fund have risen 250% since September, so the race is on for more businesses in Sussex to take the funding and save money.”

The launch of the campaign was attended by deputy city council leader Ayas Fallon-Khan, who has responsibility for business and sustainability.

He urged businesses to contact the Carbon Trust as a way of helping the city in its bid to achieve the 10:10 challenge, which aims to reduce carbon emissions by 10% in 2010-11.

He said: “Almost a third of Brighton and Hove’s total carbon emissions come from the business sector.”

Councillor Fallon-Khan said taking advantage of the Carbon Trust’s offer and joining the 10:10 campaign would see businesses “blazing a trail towards a low-carbon future”.

He added: “You’ll save money now as the bills shrink, and you’ll save money in the future when laws force everyone to catch up with you.

“You will also save money by keeping staff and winning new people from rivals who don’t do their bit as well as you are.”

For information on how to apply for a loan, visit www.bigbusiness refit.co.uk.