Q: Dan, before we dive into the industry topics — can you tell us a bit about your background, and how your experience in corporate banking shaped your approach to recruitment funding?
Dan Brogan: I've spent my entire career in financial services, with the last two decades dedicated to supporting SMEs, particularly owner-led businesses. That experience has given me an appreciation for the unique challenges and opportunities these companies face. My focus has always been on understanding their needs and delivering solutions that help manage risk, maximise opportunities and fuel growth.
The transition from Business and Corporate Banking into recruitment funding was a very natural one. High-growth recruitment businesses share many of the same dynamics as other fast-moving SMEs: they’re entrepreneurial, agile, and often led by passionate founders. While recruitment has its own nuances, the core principles remain the same: listening closely, tailoring financial strategies, and enabling businesses to scale with confidence
Q: Moving from a large corporate environment to leading an SME like 3R must have been quite a shift. What key lessons have you brought with you — and what’s been the biggest learning curve as an MD?
DB: It’s certainly been a shift - but a refreshing one! Coming from a large corporate environment, it’s been great to step away from the layers of process, bureaucracy, and red tape that often slow things down. At 3R, we have the freedom to be agile; We can make decisions quickly, pivot when needed, and double down on opportunities without delay. That kind of responsiveness is incredibly rewarding.
One of the biggest adjustments as an MD of an SME is the breadth of responsibility. You wear many hats, and unlike in a multinational, there aren’t endless departments or specialists to lean on. But that’s where the strength of your network comes into play. Collaborating with trusted advisors, partners, and suppliers becomes essential and having a brilliant team around you makes all the difference. Their expertise and commitment are what allow us to move fast and stay focused.
Q: Let’s talk about the current recruitment landscape. How would you describe the funding and compliance environment as we move from 2025 into 2026? What trends or challenges are you seeing right now?
DB: The recruitment landscape has been a challenging one for some time now, and as we move from 2025 into 2026, that pressure isn’t easing. We’re seeing more competition than ever, and it’s the businesses with a clear plan, a well-defined proposition, and deep sector expertise that are coming out ahead. The phrase “inch wide and mile deep” is becoming a mantra - having a brand that’s recognised as a true specialist is more important than ever.
Recruiters are also diversifying; whether that’s expanding into new territories or broadening their client proposition. Clients are demanding a broader value proposition than ever before, and that’s driving innovation across the board. In such a volatile market, building a balanced business with both permanent and contract books is proving essential - not just for maintaining regular revenue, but for creating long-term value.
On the compliance front, regulatory reforms are on the horizon, and end clients are scrutinising supply chains more closely than ever. Transparent, real-time risk management practices are no longer optional, they’re vital. We’re also seeing a shift toward project-based or statement-of-work placements, which brings its own funding and operational challenges. Recruiters who can run and finance these models effectively will be well-positioned to thrive in the evolving landscape.
Q: Funding accessibility seems to be tightening across multiple sectors. How is this affecting recruitment businesses, and what should agency owners be aware of?
DB: It’s true, funding accessibility is tightening across multiple sectors, and recruitment is no exception. We’re seeing end clients extend payment terms, squeeze margins, and consolidate PSLs, all of which put pressure on cash flow. Instances of late payment and even defaults are becoming more frequent, which naturally makes lenders and their insurers more cautious. As a result, we’re seeing more restrictive covenants attached to funding facilities, and in some cases, greater difficulty securing BDP insurance, particularly in certain sectors.
Many agencies have had to scale back in recent years, and for some, their traditional funding and back-office setups have become too rigid and costly to support growth. That’s why we’re seeing more recruitment businesses partner with specialist funders like 3R - organisations that understand the nuances of the industry and can offer flexible, agile solutions. In a market like this, having a funding partner that can adapt quickly and provide a platform for sustainable growth is more important than ever.
Q: Compliance continues to be a major talking point — from IR35 to payroll accuracy. What do you think are the biggest compliance challenges agencies face today, and how can they stay ahead?
DB: Compliance continues to be a major focus for recruitment agencies, and while the fundamentals haven’t changed: having robust processes, clear visibility of key process points and risks, and continuously evolving workflows and mitigation strategies — the landscape itself is shifting rapidly.
One of the most pressing developments is the upcoming reform to umbrella company legislation, set to take effect in April 2026. These changes will place greater accountability on agencies and end clients to ensure compliance throughout the supply chain. Agencies need to start preparing now: understanding what visibility end clients will require and putting in place risk mitigation strategies that are both transparent and real-time.
IR35 remains a critical area too, especially as enforcement tightens and scrutiny increases. Agencies must stay vigilant in how they classify and manage contractor engagements.
As more agencies expand into international markets, the compliance challenges grow more complex. Operating across borders brings opportunity but also increased regulatory risk. Staying ahead means investing in tech-based solutions that streamline compliance and partnering with experts who understand the nuances of global legislation.
Ultimately, it’s about being proactive. Agencies that build strong, adaptable compliance frameworks will not only protect themselves - they’ll also position their businesses as trusted partners in a fast-changing market.
Q: How is 3R adapting to these changes? Can you tell us about any new solutions or innovations you’re working on to meet evolving client needs?
DB: At 3R, our business is built on seamless processes, powered by market-leading technology and backed by exceptional service. That foundation allows us to stay agile and responsive as the industry evolves.
To keep ahead of the curve, we’re actively partnering and integrating with like-minded experts across the recruitment ecosystem; specialists who bring complementary expertise and help us deliver even greater value to our clients. These strategic collaborations are key to ensuring we remain at the forefront of funding and back-office compliance innovation.
While I can’t share all the details just yet, we’re working on a number of exciting initiatives that will introduce truly innovative solutions to the market. These developments are designed to meet the changing needs of recruitment businesses and will add significant value for both our current and future customers.
Q: Beyond the financial products, what do you believe makes a recruitment business — or indeed any business — stand out in a competitive market?
DB: First and foremost, I am a great believer that a great business and therefore by default a great product or service is always built on the people. It might sound like a cliché, but it’s absolutely true. The human connections, relationships, and expertise your team brings to the table are what create lasting impact. That’s the real differentiator.
Secondly, it’s about having a deep understanding of your market. You need to know the challenges your clients face, the opportunities they’re chasing, and be crystal clear on the problems you’re solving or the value you’re delivering. That clarity drives relevance and trust.
And finally, it all comes down to execution. Delivering excellence with consistency and reliability is what builds reputation and long-term success. When you combine great people, deep market insight, and flawless delivery - you create a business that not only stands out but leads.
Q: And specifically for 3R — how do you go beyond simply offering funding? What’s the added value you bring to your clients?
DB: At 3R, we go far beyond simply offering funding. We’re incredibly proud of our Back-Office tech platform - it’s the engine behind everything we do. It gives our clients a one-stop shop to manage their operations with full real-time visibility and integrated solutions. We genuinely believe it’s the best in the market.
What sets us apart is that our entire business model is built by recruiters, for recruiters. That insider perspective means we understand the pain points and can proactively eliminate process hiccups and mitigate risks before they even arise.
Our funding solution is designed to be flexible, accommodating a wide range of invoicing requirements, billing approaches, and supply chain complexities. That depth of industry knowledge allows us to tailor our support precisely to the needs of each client, helping them scale with confidence
Q: You talk a lot about building deep partnerships with clients. What does that look like in practice, and how do you maintain that level of trust long-term?
DB: Building deep partnerships is at the heart of what we do at 3R. One of the most consistent pieces of feedback we receive is that our support adds real value, not just to our recruiters, but to their end clients and contractors as well. That means our impact goes far beyond simply providing working capital; we help enhance our clients’ value proposition in a competitive market.
Our team of industry experts is accessible, knowledgeable, and genuinely invested in our clients’ success. We’re often told that this sets us apart from other providers - we don’t just support the business, we become part of it. In a world where even getting hold of a human for a basic query can be a challenge, having that level of engagement and strategic input is invaluable.
Ultimately, trust is built through consistency. We pride ourselves on delivering what we promise and getting things right the first time. That reliability, combined with deep industry insight and a collaborative approach, is what allows us to maintain strong, long-term relationships with our clients.
Q: Finally, what one piece of advice would you give to recruitment agency owners as they plan for 2026?
DB: It’s no secret that the market has been tough for some time, but my advice to recruitment agency owners is simple: plan for growth now. Don’t wait. Take proactive steps to ensure your business is set up to scale quickly and without restrictions. That means thinking strategically about what you can outsource and choosing your partners wisely.
By doing so, you free up time and energy to focus on what you do best - building relationships and growing your business. When the growth comes, you want to be ready, not scrambling to build infrastructure reactively. The agencies that prepare now will be the ones leading the charge in 2026.
Quickfire Round
Coffee or tea to start the day?
Definitely coffee!
One word to describe 3R’s culture?
Awesome!
What is the best business lesson you’ve ever learned?
Trust your instinct, it is usually right!
Favourite part of your job?
Helping both people and businesses grow
If you weren’t in recruitment funding, what would you be doing?
Living on a vineyard, making red wine - somewhere hot!
