In a survey by the Trust of 1,500 SMEs, over half (52%) said they don't have the cash to upgrade equipment whilst 60% said they wait until their equipment breaks down completely before replacing it.

Almost half (46%) of those surveyed said they were unaware that they could cut energy costs by replacing old equipment and 41% said they have accepted higher energy bills as a fixed cost, rather than paying the up-front cost of replacing old equipment.

A new loans and support scheme has now been launched by the Carbon Trust which aims to help businesses to scrap their old power-guzzling equipment and replace it with new equipment that's more efficient and cheaper to run. The Big Business Refit scheme provides expert guidance, plus financial support in the form of £100 million in interest free loans.

The Carbon Trust's unsecured, interest-free loans can be used for equipment replacements costing between £3,000 and £400,000. The loans are designed to pay for themselves through direct energy savings, so that once the loan is repaid, savings go straight to bottom line.

The Big Business Refit is expected to help up to 3,000 UK SMEs save a total of £40 million from their annual energy costs. David Caro, FSB Energy and Environment Chairman, said: "Due to their size, small businesses are in a unique position to adopt energy efficiency measures more easily and quickly than their larger counterparts.

"However, small business owners are often limited by time constraints and are not always aware of where and how to access advice on how to go green.

"The support of the Carbon Trust can help small businesses play their part in being energy efficient and cutting costs, saving money and boosting their own enterprise."

Source: Workplace Law Network