Businesses that sell to or work beside Houston’s medical neighborhood get paid on other people’s schedules. Here is how that plays out and what to size funding to.
Apply Now →The Texas Medical Center is a neighborhood in Houston, in Harris County. Around any concentration of hospitals and clinics grows a second economy: independent practices, imaging and lab services, medical supply and equipment vendors, linen and cleaning companies, staffing agencies, caterers, parking and shuttle operators, and small firms that repair devices. This guide is about that second economy, because its cash flow is shaped by the same thing: a large institution or an insurer is on the other end of the invoice.
A practice sees a patient today and collects from an insurer weeks later, after the claim is submitted, reviewed and sometimes sent back for correction. Staff are paid every week the whole time.
A supplier or service company delivers on a purchase order and then waits through an accounts-payable cycle. Large buyers often pay on fixed terms that suit them, and the vendor’s own supplier wants payment sooner.
A staffing firm pays its workers weekly and bills the client on terms. The faster it places people, the more cash it needs up front, which is the odd result of growing.
| Cost | Timing |
|---|---|
| Clinical and support payroll | Weekly or biweekly, fixed |
| Medical and office supplies | At order or on short terms |
| Equipment service contracts and repair | On failure, not on schedule |
| Rent in a high-demand area | Monthly, fixed |
| Insurer or institutional payment | Weeks after service, variable |
Only the last row is outside your control, and it is the only row that brings cash in.
For illustration only, not our terms: a small specialty vendor adds a new institutional customer. The first order requires $45,000 of product and a new part-time driver. The customer pays at the end of an accounts-payable cycle that runs about two months. The vendor’s supplier wants payment in 30 days. That leaves about a month of the $45,000, plus a month of the driver’s wages, to carry. A request sized to that month is sensible. A request sized to the entire annual contract is not.
Funders read the business bank account, so make sure it shows your actual deposits cleanly: insurer payments, customer payments and card receipts, not a blur with personal money. If deposits arrive in lumps around claim runs or payment cycles, say so in the application, because lumpiness is normal for these businesses and is easier to read when explained.
Texas Biz Funding considers $25,000 to $5,000,000 for working capital, funded in as little as 24 hours after approval. The application is five minutes with a soft credit pull. Sole proprietors can apply, which covers solo practitioners who operate without an entity.
It is described as a neighborhood in Houston, in Harris County. This guide uses it as a shorthand for businesses working near a large medical district.
Because revenue arrives after the claim cycle while payroll and rent are due on fixed dates. Higher volume can widen the gap.
Yes. Funders consider the vendor’s own bank activity and cash needs; the buyer’s slow payment is a common reason to ask.
Sole proprietors can apply, regardless of whether the practice is set up as an entity.
The weeks between paying costs and being paid, counted from your own receivables calendar, not the total annual revenue.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
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