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^Go Growth Guarantee Scheme for Permanent Placement Agencies

Q: Are permanent placement agencies eligible for the Growth Guarantee Scheme?

Yes, permanent placement agencies are eligible if they are UK-based, trading, have under £45m turnover, and are not in excluded sectors.

Q: How much can a permanent placement agency borrow under the Growth Guarantee Scheme?

Agencies can typically borrow up to £2 million per group (£1 million for Northern Ireland). Lower sector caps may apply for some sectors.

Q: What can loans from the Growth Guarantee Scheme be used for by permanent placement agencies?

Loans can be used for cashflow, investment, and growth purposes to support the agency's operations and expansion.

Q: Do permanent placement agencies have full liability for loans under the Growth Guarantee Scheme?

Yes, while lenders get a 70% government guarantee, agencies are 100% liable for repaying the loan.

The Growth Guarantee Scheme for Permanent Placement Agencies is a plan that helps these agencies grow by offering support and financial security, so they can confidently place candidates in permanent jobs. Interested in learning how it can help your agency? Let's explore it together!

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What are the ^benefits of Growth Guarantee Scheme for Permanent Placement Agencies?

The Growth Guarantee Scheme for Permanent Placement Agencies provides an essential framework that supports agencies in the recruitment process, ensuring that businesses receive qualified candidates while minimizing risks. This scheme helps agencies stand out by offering assurances to clients about the quality of placements, thereby fostering trust and satisfaction in the hiring process.

Job placement support

Enhanced client satisfaction

Risk mitigation

SCALE YOUR BUSINESS TO NEW HEIGHTS

What are the different types of Growth Guarantee Scheme for Permanent Placement Agencies?

Revenue-Backed Guarantee Scheme

Guarantees a minimum revenue for agencies based on candidate placements.

Revenue-Backed Guarantee Scheme

This scheme ensures agencies receive a minimum guaranteed revenue for every successful placement, providing financial stability and encouraging more placements, especially in volatile markets.

Retention-Based Guarantee Scheme

Ensures payment or support if placed candidates remain for a specified period.

Retention-Based Guarantee Scheme

Guarantee is activated if a placed candidate remains in the position for a defined time (e.g., 6 months), ensuring both agency and client commitment and reducing early attrition risk.

Performance Milestone Guarantee Scheme

Guarantees are triggered when agencies meet specific performance metrics.

Performance Milestone Guarantee Scheme

Guarantee or support is only provided when pre-defined metrics—such as placement volume, diversity, or client satisfaction—are achieved, incentivizing high-quality performance and outcomes.

What is the Growth Guarantee Scheme for Permanent Placement Agencies?

Government-Backed Loan Support

The Growth Guarantee Scheme provides loans to permanent placement agencies and other UK businesses, with the government guaranteeing 70% of the loan amount. This reduces the risk for lenders, making it easier for agencies to access funding, but the business is still responsible for paying back the full amount.

Flexible Funding for Growth

Agencies can use funds from the scheme for legitimate business purposes such as managing cash flow, investing in staff, buying equipment, or expanding services. The scheme supports a range of financial products including term loans, overdrafts, asset finance, and invoice finance, with amounts from £1,000 to £2 million and repayment terms up to 6 years.

Accessible Eligibility for Trading Agencies

Permanent placement agencies are eligible if they are UK-based, have traded for at least two years, generate most of their income from trading activity, and have annual turnover up to £45 million. Personal guarantees may be required (but not a home as security), and agencies must not be in insolvency, with applications assessed for business viability and eligibility.