Recurring Revenue in Cleaning Services

February 24, 2026

by a searcher from City University of New York, New York City Technical College in Smyrna, DE 19977, USA

Recurring contracts are one of the strongest features of janitorial businesses. Commercial clients often require daily or weekly service, making revenue more predictable than project-based industries. This predictability allows better planning for staffing, equipment, and cash flow, which is ideal for post-acquisition growth strategies. Do you prioritize contract-heavy businesses in your search?

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to meet you. Recurring contracts are one of the strongest features of janitorial businesses. Commercial clients often need daily or weekly service, which makes revenue more predictable than project-based industries. That predictability helps with staffing, equipment planning, and cash flow, all of which matter when you're running a business post-acquisition. But recurring revenue alone doesn't tell the full story. You also need to look at how that revenue is distributed. If any single customer accounts for more than 20% of total revenue, that's a red flag for lenders. Most SBA underwriters will scrutinize customer concentration at that level and may require additional documentation, adjusted deal terms, or seller protections like forgivable notes tied to customer retention. Even in the 10-20% range, expect questions. Always more than happy to talk about the financing piece. We have a lot experience financing janitorial companies via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by a searcher
from City University of New York, New York City Technical College in Smyrna, DE 19977, USA

Interested in learning from others underwriting service businesses with recurring revenue.

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