A crowdfunded lender has extended the maximum loan size available on its peer-to-business lending platform to £250,000.

Online lending portal rebuildingsociety.com, which previously offered a maximum loan of £50,000, has quintupled the amount that it will lend to prospective borrower businesses.

The decision was made to extend the loan limit after the site advanced a total of £340,000 was lent to nine businesses across the country.

In light of such levels of lending, rebuildingsociety.com has welcomed borrowers who are looking for larger amounts, up to a value of a quarter of a million pounds.

As announced last September, the intermediary portal pays introducing brokers a 1.5 per cent fee for any loans completed through its website.

Terms extend from six months to 60, with funds made available to limited companies, limited liability partnerships, social enterprises and PLCs.

Businesses are encouraged not to borrow more than they need, as they are able to refinance or reapply easily online, making borrowing in multiple stages more cost-effective.

Loans of £50,000 and less can be supported by a personal guarantee from a company’s director; requests for amounts in excess of £50,000, asset security or an all-asset debenture must be offered by the borrower.

Speaking about the decision to expand the firm’s lending, Julian Wells, Marketing Director at rebuildingsociety.com, said: “Our model is proving popular with brokers, business owners and individuals who want to lend to businesses.

“In the last month we have seen a sharp rise in new lenders registering with us and feel we have the funds and lending appetite to get these deals done.”

Julian added: “I would encourage brokers who might have waited to see how we get on to get back in touch, because we’re certainly open for their business.”