Janitorial · Invoice factoring
Invoice factoring for janitorial and cleaning companies
Cleaning crews are paid every week, while commercial customers often pay monthly invoices on net-30 to net-60 terms. Factoring advances cash against those invoices.
What to know
What cleaning companies should know about factoring.
Recurring invoices are easy to underwrite.
Steady monthly billing to commercial customers gives providers a predictable receivable to advance against.
Labor is the cost to cover.
Payroll is the largest expense for most cleaning businesses and is due weekly regardless of when customers pay.
Customer mix matters.
Commercial and government customers are generally preferred by factors. Residential or very small customers may not be eligible.
Watch for contract minimums.
A small company with modest billing should check monthly minimums and fees so the cost does not outweigh the benefit.
FAQ
Common questions from janitorial companies.
Can a small janitorial company use invoice factoring?
Yes, as long as it invoices commercial or government customers. Some providers have minimum volumes, so ask before assuming a small company will be accepted.
How is factoring different from a loan for a cleaning company?
Factoring advances cash against invoices you have already issued, so it depends mainly on your customers’ credit rather than creating a traditional loan.
Can I factor only some customers?
Some providers allow selective factoring, while others require all invoices. Choose based on whether your cash gap comes from a few slow payers or from all of them.
Is Truidian a lender or factoring company?
No. Truidian is a business solutions company. It helps businesses identify and connect with participating third-party providers, who make every approval, pricing and terms decision.
Tell us about your janitorial business.
Share a few details and we'll identify participating providers whose programs may fit.
Truidian is a business solutions company, not a lender, factoring company or payment processor. Financing and services are offered by participating third-party providers and are subject to their approval and terms. Approval, funding, rates and terms are not guaranteed.