Shaun Elliot, of Aylesford Metal Company, fourth from left, with Chancellor of the Exchequer George Osborne at the launch of the National Guarantee Loan Scheme

by business editor Trevor Sturgess

A Kent firm aims to create jobs after becoming one of the first to benefit from the Government’s credit easing deal with banks.

Aylesford Metal Company was granted a "cashback" loan under the so-called National Loan Guarantee Scheme (NLGS) unveiled by Chancellor of the Exchequer George Osborne.

It aims to make finance more readily available and affordable for small and medium enterprises (SMEs).

Several banks, including Barclays, RBS, Lloyds, Santander and Aldermore have signed the deal.

The Aylesford firm which processes ferrous and non-ferrous metals, is benefiting from Barclays Cashback Finance Scheme and celebrated the milestone with Mr Osborne in London.

Under this scheme, SMEs taking out a loan with Barclays will receive the full benefit of the NLGS discount immediately in the form of an upfront 1% cashback over the first five years.

Shaun Elliott, of Aylesford Metal Company, said: "The funding will allow us to purchase a new freehold site and offer additional jobs to local people."

Steve Cooper, managing director at Barclays, said: "By giving our customers the full benefit of the NLGS on day one, they receive a lump sum of cash which they can put to use immediately to grow their business.

We think this is more useful than drip feeding the value over the lifetime of a loan."

The NLGS allows Barclays to raise wholesale funds at a cheaper level. Barclays will pass 100% of the benefit on to clients or back to the Government.