LendInvest has claimed to have completed the world’s biggest peer-to-peer loan.

The peer-to-peer mortgage lending platform that lends to businesses secured against property provided a loan of £4.12 million to a property developer to fund the acquisition of two adjoining commercial buildings in Croydon, South London.

The buildings have permitted development to turn the buildings into a 110 new residential units.

LendInvest, which was spun out of Montello Bridging Finance last year, has completed over £25 million worth of loans since being established in May 2013.

Lenders will get a 12% rate of return and will receive their money back within 12 months. The loan was provided by over 300 investors who provided sums from £10,000.

LendInvest now has almost a thousand investors that are participating in loans with amounts ranging from £10,000 to their largest investor who has put in £1.6m, with the average amount invested being £80,000.

The Croydon deal will help increase the supply of affordable housing in London and the regeneration of the Croydon area as the flats, due to be sold off-plan, will be priced between £200,000 and £250,000.

Christian Faes, co-founder of LendInvest, said: “This is big moment for the bourgeoning p2p industry, which is increasingly becoming a credible mainstream asset class for investors, as well as a source of funding for SMEs.

“Investors will secure a great rate of return and London will also benefit from an increasing amount of affordable housing. This deal is a real shot in the arm for the British alternative finance sector, which is fast emerging as a world leader.”