Peer to peer lenders have grown their books by over £2bn since the start of 2016, with cumulative lending now topping £6.5bn.
In the last quarter alone, peer to peer lenders have provided £700m of new funding according to the figures, which are prepared by the Peer to Peer Finance Association (P2PFA).
"Data from the third quarter of 2016 highlights the strength of peer to peer lending in the UK, and underscore the value that this form of alternative finance is providing to the economy for borrowers – both businesses and consumer – as well as lenders. Peer to peer lending continues to deliver a competitive alternative to traditional lending," said P2PFA chair Christine Farnish.
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The number of borrowers and lenders have both increased, with businesses accessing the majority of funding.
Nevertheless, individuals have now been extended cumulative credit of £2.7bn across the eight member firms that P2PFA represents.