Funding Circle has revealed that more than £100m has been lent to the UK’s small businesses through it in less than three years.

The peer-to-peer lender has released figures showing more than 200% year-on-year growth and set out ambitions to expand the small business lending market.

Of the £100m total, £50m has been lent out by British people since September 2012 including £10m in 30 days.

James Meekings, co-founder of Funding Circle, said: “British people across the country are increasingly cutting out the middleman by assuming the role of the banks and lending directly to ambitious British businesses.

“The fact that the industry has grown so quickly highlights the demand for finance among British small businesses. With 90% of small business lending controlled by five major banks, our rate of growth proves the demand for choice.

“Peer-to-peer lending is challenging the way business finance is done. We believe peer-to-peer lending has the potential to provide up to 20% of all small business funding within 10 years.”

Funding Circle launched in August 2010 and has experienced growth of more than 200% year-on-year, and increased its number employees at its London headquarters from 3 to 60.

To date more than 16,000 investors have funded nearly 2,000 businesses, earning an average return of 6.2%