Over 570 businesses across the UK borrowed more than £36 million in the third quarter using peer-to-peer lending.

To cope with the ongoing demand for alternative sources to finance, Funding Circle has announced the further expansion of its business development team. Funding Circle has experienced a record 167% increase in business from intermediaries over 2013.

Laura McMullen, business development director at Funding Circle, said: “As we begin to see early signs of economic recovery in the UK, the Bank of England figures tell us that the banks are still failing to show confidence in the country’s small businesses.

“For the economy to continue to strengthen, it is imperative that finance finds its way to those that will do most to drive future growth and employment.

“Throughout 2013 we have experienced considerable interest from the intermediary market across all our products. As we continue to pass lending milestones, and alternative sources to finance become even more popular across all sectors and regions, we are ensuring we keep up with demand by expanding our team.”