Best Business Loans for Cleaning Service Companies

Cleaning services need steady capital to thrive. Explore the best loan options to manage cash flow and grow your business efficiently.

Running a cleaning service—whether residential, commercial, or specialized—requires a steady flow of capital to purchase supplies, maintain equipment, hire staff, and expand operations. While many cleaning businesses operate on a contract basis, delays in payments and seasonal fluctuations can create cash flow gaps. Business loans provide the financial support needed to keep operations running smoothly and scale efficiently.

In this guide, we’ll explore the best loan options for cleaning service businesses, how to qualify, and the key factors to consider when choosing a financing solution.

1. Why Cleaning Services Need Business Loans

Key Financial Challenges Faced by Cleaning Companies

• Purchasing Equipment & Supplies: Industrial cleaning machines, eco-friendly products, and protective gear require ongoing investment.
• Hiring & Payroll Costs: Expanding staff and covering wages, especially before client payments are received.
• Vehicle Maintenance & Fuel Costs: Mobile cleaning teams rely on vehicles for service delivery.
• Marketing & Client Acquisition: Investing in local advertising, SEO, and digital marketing to attract new customers.
• Cash Flow Gaps: Managing operational costs when awaiting contract payments.

Business loans can help cleaning companies cover these costs while maintaining financial stability and growth.

2. Best Loan Options for Cleaning Services

1. SBA Loans

Government-backed loans that provide affordable financing for small businesses.

Best for: Expanding operations, purchasing large equipment, or hiring staff.

Pros: Low interest rates, long repayment terms.

Cons: Lengthy application process and strict eligibility requirements.

2. Business Lines of Credit

A revolving credit facility that allows businesses to borrow funds as needed.

Best for: Managing short-term cash flow fluctuations.

Pros: Flexible borrowing, pay interest only on the amount used.

Cons: Higher interest rates compared to traditional term loans.

3. Equipment Financing

Loans specifically designed to purchase or lease cleaning equipment.

Best for: Buying industrial vacuum cleaners, carpet cleaners, and pressure washers.

Pros: Equipment serves as collateral, making approval easier.

Cons: Funds must be used specifically for equipment purchases.

4. Term Loans

A lump-sum loan repaid over a fixed period with interest.

Best for: Large one-time investments such as new office space or fleet expansion.

Pros: Predictable repayment terms and lower interest rates than short-term loans.

Cons: Requires strong credit and revenue history.

5. Invoice Factoring

A financing option where businesses sell unpaid invoices to a factoring company for immediate cash.

Best for: Businesses that experience slow-paying clients and need quick access to funds.

Pros: Provides immediate working capital without taking on debt.

Cons: Factoring fees reduce total revenue.

6. Merchant Cash Advances (MCA)

A financing option where businesses receive an upfront lump sum and repay through a percentage of daily credit card sales.

Best for: Cleaning companies with high credit card transaction volumes.

Pros: Quick approval and funding.

Cons: Higher repayment costs than traditional loans.

3. How to Qualify for a Business Loan as a Cleaning Service

Lenders evaluate several factors when approving loans for cleaning businesses. To improve approval chances, business owners should:

• Maintain a Strong Credit Score: A score of 680+ increases eligibility for favorable loan terms.
• Show Proof of Revenue: Providing tax returns, financial statements, and cash flow reports.
• Have a Clear Business Plan: Outlining how the loan will be used for growth and revenue generation.
• Compare Multiple Lenders: Research various banks, credit unions, and online lenders for the best financing options.
• Separate Business & Personal Finances: Maintaining a business bank account to establish financial credibility.

4. Best Practices for Managing Loan Funds

Use Funds Strategically: Allocate capital to high-priority business expenses.

Monitor Cash Flow: Ensure revenue projections align with repayment schedules.

Avoid Overborrowing: Take only the necessary amount to prevent financial strain.

Build an Emergency Fund: Use a portion of the loan to create a financial buffer.

Cleaning service businesses have multiple loan options to help manage cash flow, invest in equipment, and grow their client base. Whether securing an SBA loan, business line of credit, or invoice factoring, choosing the right financing solution can help businesses stay competitive and financially stable. By understanding loan options, qualifying criteria, and best practices for managing funds, cleaning service owners can make informed decisions that support long-term success.