How do I get working capital for my first cleaning contract before the client pays?

If you've just won your first commercial cleaning contract but won't be paid for 30 to 60 days, the fastest way to fund payroll and supplies is to borrow against the contract or invoice itself, not your thin credit history. Invoice factoring and purchase-order financing both advance cash based on your client's creditworthiness, so a brand-new contract holder with no track record can still qualify. A short-term bridge loan or an SBA line of credit are alternatives once you can show the signed contract as your repayment plan.

The core problem is timing: you incur turnover, payroll, chemicals, and equipment costs in week one, but the building owner or property manager pays on net-30, net-60, or even net-90 terms. The financing options below are built to close exactly that gap.

Invoice factoring — borrow against the invoice you've already billed

Once you've completed work and sent an invoice, you can sell it to a factoring company for most of its value today. Factors typically advance 70% to 90% of the invoice up front and release the remainder, minus their fee, after your client pays. Factoring fees usually run about 1% to 6% per 30 days the invoice stays outstanding, so net-30 terms cost less to factor than net-60 or net-90. The decisive advantage for a new company: factors care more about your customer's credit than your own business history, which is why this works when you have no revenue track record. Funding typically lands within a few business days.

Purchase-order and contract financing — funding before the work is done

If you need cash to staff and supply the contract before you can invoice it, purchase-order financing covers supplier and startup costs up front, with fees commonly running 1% to 6% per 30-day cycle the advance is outstanding. The SBA's Contract CAPLine is purpose-built for this: it finances the direct costs, overhead, and general and administrative expenses tied to one or more specific contracts. It's slower to obtain than factoring but far cheaper if you qualify.

Bridge loans and SBA microloans

A short-term business bridge loan can cover the gap when you have a signed contract as a documented exit strategy — lenders weight the contract award and collateral over your credit file. Commercial bridge financing funds fast but carries higher rates, so treat it as a bridge, not permanent capital. For smaller, cheaper needs, an SBA Microloan provides up to $50,000 and is often used for working capital and supplies by newer businesses.

What to have ready

For factoring or PO financing, prepare the signed contract or purchase order, the invoice (if issued), and your client's business details so the funder can verify their credit. Avoid stacking the most expensive bridge debt for routine cash-flow gaps; reserve it for genuinely short, contract-backed bridges. Once you have a few months of contract revenue, a revolving line of credit becomes the cheaper, repeatable tool for the next contract.

Sources

• How Invoice Factoring Works — Bankrate
• Invoice Factoring Rates — FundThrough
• Purchase Order Financing 2025 — United Capital Source
• Types of 7(a) Loans (Contract CAPLine) — U.S. Small Business Administration
• Business Bridge Loan — Biz2Credit
• Commercial Bridge Loans — NerdWallet
• SBA Loans (Microloan program) — U.S. Small Business Administration