Compare business loans for cleaning services

Financing is an invaluable tool for both new and established cleaning services. A wide variety of business loans for cleaning services are available, so your best option will be to narrow down your specific needs before applying with a lender.

Compare business loans for cleaning services

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Product	Finder Score	APR	Loan Amount	Loan Term	Broker Compliance
Promoted Finder score 9.5 Excellent Journey Capital Business Loan	Finder score 9.5 Excellent	16% – 25%	$10,000 - $500,000	4 - 24 months	To be eligible, you must have been in business for at least 6 months with a minimum $100,000 in annual revenue.	Go to siteMore info Compare product selection Compare	loading
Promoted Finder score 8.9 Great Merchant Growth Business Loan	Finder score 8.9 Great	12.99% – 39.99%	$5,000 – $800,000	6 – 24 months	To be eligible, you must have been in business for at least 6 months and have a minimum of $120,000 in annual revenue.	Go to siteMore info Compare product selection Compare	loading
Promoted Finder score 9.1 Excellent Loans Canada Business Loan	Finder score 9.1 Excellent	6.99% - 35.00%	$500 - $500,000	3 - 60 months	Loans Canada is a loan search platform. Applicants will be matched with lenders.	To be eligible, you must have been in business for at least 9 months, have a Canadian business bank account and a minimum of $120,000 in annual revenue.	Go to siteMore info Compare product selection Compare	loading
Finder score 9 Excellent Advance Funds Network Business Loan	Finder score 9 Excellent	Starting at 8.00%	$5,000 - $1,000,000	3 - 24 months	To be eligible, you must have been in business for at least 6 months, have a minimum annual revenue of $240,000 and a minimum credit score of 500.	Go to siteMore info Compare product selection Compare	loading
Finder score 8.9 Great Driven Business Loan	Finder score 8.9 Great	Undisclosed	$10,000 - $300,000	3 - 24 months	To be eligible, you must have been in business for at least 6 months and have a minimum of $84,000 in annual revenue.	More info Compare product selection Compare	loading

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Finder Score for business loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 10+ business loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

7 ways to finance your cleaning business

New and established cleaning businesses can choose from any number of business loans for cleaning services, depending on the need.

1. Business loans

A business loan from a bank, credit union or online lender is a good choice for an established cleaning service looking to expand. It can be used as a source of working capital for marketing, hiring employees and purchasing storage space—all key for building out your business.

• Loan terms range from $500 to $500,000
• Not a good option for new cleaning businesses, as you typically need six months to two years of experience to qualify
• Choose from fixed or variable interest rates between 4.00% - 39.99%
• Most business loans range from $500 to $500,000, but some go up to $1 million

2. Business lines of credit

Business lines of credit provide more flexible access to working capital for cleaning services. If your work is seasonal or you have a fluctuating number of clients, a line of credit can help you keep things running when business slows.

• Pay 9% to 39.99% interest only on the amount you use
• Borrow, repay and borrow again up to a set limit of $5,000 to $1 million

3. Microloans

Microloans are small, unsecured business loans for owners who may not need or qualify for large loan amounts. However, the turnaround may take up to a month, especially if you use a crowdfunding system.

• Loan amounts range from $500 to $50,000
• Interest rates range from 6.7% to 12%

4. Equipment financing

If you need industrial equipment for commercial projects or want to invest in new transportation, an equipment loan may be the best choice. These typically have lower rates than unsecured loans and may be easier to qualify for if you’re a new business owner.

• Interest rates range from 6.99% to 39.99%
• Your equipment is collateral, which means you could lose it if you default on payments

5. Business credit cards

Business credit cards allow you to make smaller purchases—like cleaning supplies—under your business’s name. Provided you pay them off before the end of your billing cycle, they can be a useful way to finance your cleaning service without spending money on interest.

• Some business credit cards have annual fees typically starting at $149
• Interest rates range from 11.99% to 19.99%

6. Merchant cash advance

A merchant cash advance gives you access to a lump sum loan in exchange for a percentage of your daily or weekly sales. Lenders will look at your historical sales data to determine the amount you can borrow.

• Pay a fixed fee (known as a factor rate) ranging from 1.1 to 1.5
• Receive funding within a few days
• Loan amounts range from $500 to $50,000

7. Invoice factoring

If you have a lot of large invoices and want to access that money sooner than your clients typically pay you, invoice factoring may be a good option. You sell some or all of your unpaid invoices to a factoring company, and then they handle collections.

• Receive 70–90% of the invoice up front
• When your customer pays, you’ll receive the rest of your funds less a fee of 1–6%

8. Personal loans and credit cards

A personal loan or credit card may be helpful if you’re just getting started. If you only need to fund licensing, insurance, marketing and basic supplies, you can use a card you already have or apply for a small personal loan. While the rates won’t be as competitive as options geared toward businesses, they’re much easier to qualify for. Just make sure the lender allows you to use the funds for business expenses before you apply.

• Interest rates range from 6.99% to 35%
• Borrow $500 to $50,000

9. Canada Small Business Financing Program (CSBFP) loan

If you’re eligible for a CSBFP loan, you can access up to up to $1.15 million, depending on whether you want a term loan or a line of credit. If you need new cleaning equipment, a term loan may suit your needs, but a line of credit can be used to cover your day-to-day operating expenses, which may be a better option, especially during slow periods.

• To be eligible, your business must earn less than $10 million in gross annual revenue
• Pay a 2% registration fee on the total amount loaned or authorized
• Apply through a bank, credit union or caisse populaire

How you can use business loans for cleaning services

Like most business loans, you can use your funding for a variety of purposes, including:

• Supplies
• Equipment
• Licensing and insurance
• Permits
• Marketing
• Employees

Your lender may have some restrictions, but in general, you should be able to use your funds for whatever your cleaning business needs.

What to consider when comparing business loans

Once you know the type of financing your business needs, consider these five factors when selecting a lender:

• Loan amount. Ask your lender what its upper and lower loan amounts are. If you need more than the maximum—or less than the minimum—pick a different lender.
• APR. The lower the APR, the less you’ll spend on interest and fees. And the less you spend, the more money you’ll have to invest back into your cleaning business.
• Term. The type of financing you choose will determine your loan term. The longer your loan term, the lower your monthly repayment—and the more you pay in interest. Strike a balance between loan term and monthly payment to get the most out of your loan.
• Fees. Origination fees and prepayment penalties can quickly add to the cost of your loan. Try to find a lender that charges neither. At the very least, pick one that charges less than its competitors.
• Eligibility requirements. Banks tend to prefer established businesses with at least $100,000 in annual revenue, while online lenders can have less strict requirements. If you don’t meet the business or personal eligibility standards set by your lender, you won’t be approved.

How to improve your odds of approval

Here are some tips to help improve your odds of approval when applying for business loans for cleaning services:

• Create a well-informed business plan and budget. Be sure to include details about your market—whether that’s residential or commercial cleaning, the area you plan on working in or the type of equipment you need for large projects.
• Gain experience. For new business owners, lenders will also want to see that you have experience with professional cleaning and management. While it’s not always a requirement, you’ll need to have at least a year in business and a high monthly or annual revenue to qualify for most loans.
• Improve your credit score. Working towards a higher credit score can not only improve your chance of approval, but it can also get you lower rates. Make sure you pay your bills on time, limit your number of credit applications or credit checks and don’t go over your credit limit.

How much does starting a cleaning business cost?

Cleaning businesses have lower startup costs than many other businesses, largely because you only need to invest in basic supplies, insurance and marketing. Since there’s no need for formal training or certification, you can realistically begin your business with your own supplies while using your social network to find prospective clients.

How much it costs to buy an existing franchise

Franchising fees typically range from $10,000 to $50,000 or more—and that doesn’t include the working capital requirement, which can run between $15,000 to $85,000 or more. These vary by business.

Although investing in a cleaning franchise can be expensive up front, you typically get the client base, employees and equipment with your purchase.

How much it costs to start an independent business

Here’s an estimate of some expenses you may have when starting an independent cleaning business:

• Business registration: $200–$250
• Liability insurance premiums: $700–$2,000
• Supplies and equipment: $300–$600
• Marketing: $100–$200 monthly
• Labour: $15.65–$17.94 an hour per employee (depending on your province or territory)

Tips for running a successful cleaning business

The success of your business depends on you. These tips can help you get ahead when you’re just starting out.

1. Understand your local market. Your area should play a role in the services you offer. If there are cleaning businesses already working, you need to know how to stand out. The type of clients you can snag will also depend on where you want to work, like office buildings or clients’ homes.
2. Invest in a specialty service. The type of cleaning you do will also influence the clients you have and the competition you face. If you can offer a specialty service—like post-construction cleanup—you may be able to snag a niche other businesses haven’t invested in.
3. Stick to a budget. Supplies will be the most common cost to your business, but don’t discount marketing when trying to reach clients. And if you plan to expand, you’ll also need to have room in your budget for additional employees and transportation.
4. Keep up with licences and insurance. Although the exact cost will depend on your area, you’ll need liability insurance on top of the licences and permits your municipality requires for you to operate a small business.
5. Develop strong relationships with clients. Your clients are your bread and butter. When you’re starting out, word of mouth will be your ally. As you expand, having good reviews will also help you earn new clients while keeping your current ones happy.
6. Use booking and scheduling software. Invest in software to help manage appointments, routes and customer communication efficiently. This is especially useful when you hire employees, as you can save time and ensure you’re all on the same page.

Types of cleaning services

The funding you choose can depend on the type of cleaning services you offer, so here are some to consider:

Domestic cleaning services

• Carpet and upholstery cleaning
• Window cleaning
• Pool cleaning
• Deep cleaning
• Appliance cleaning
• Pressure washing services
• Move-in/move-out cleaning
• Post-renovation cleaning

Commercial cleaning services

• Office cleaning
• Airbnb cleaning
• Educational institution cleaning
• Medical facility cleaning
• Warehouse cleaning
• Retail store cleaning
• Gym cleaning
• Event cleaning

Bottom line

Starting a cleaning business—or finding funding for your established service—is relatively simple. Provided you know what you’re looking for in a loan, you should be able to compare business loans and choose the right lender to take your business to the next level.

Frequently asked questions

• Can I apply for business loans for cleaning services with bad credit?

  Yes, though you may need to provide collateral, such as your cleaning equipment, or explore alternative lenders. Depending on how bad your credit is, you may have to pay a higher interest rate or consider a smaller loan amount.

• What do lenders consider when applying for business loans for cleaning services?

  When applying for business loans for cleaning services, you typically need to provide:

  • Loan purpose
  • Time in business
  • Financial statements
  • Personal and business credit scores
  • Legal documents like your business license
  • Personal and business tax returns
  • Business plan

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Rebecca Low

Writer

Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including income.ca, Indeed, and Expatden, writing on topics like personal finance, career development, and travel. See full bio

Co-written by

Kellye Guinan

Writer

Kellye Guinan is a freelance editor and writer, specializing in consumer lending. Her writing and analysis has been featured on Bankrate, MSN and MediaFeed. She holds degrees in anthropology and German language and literature from Middle Tennessee State University. See full bio

Kellye's expertise

Kellye has written 23 Finder guides across topics including:

• Personal, business, student and car loans
• Credit scores
• Car financing
• Debt consolidation