Medical Practice Funding in Texas: What You Need to Know

Opening a medical clinic is rewarding – but it comes with upfront costs. Lease deposits. Equipment. Insurance. Payroll. Marketing. It all needs to be paid for before you ever see your first patient.

That’s where medical practice funding comes in. But it’s not as simple as walking into a bank and asking for money. Lenders want proof that you’ve done the math, built a plan, and know what it takes to keep the doors open past month three.

This article walks through what new clinic owners in Texas need to know. You’ll see what it actually costs to get started, what kinds of medical business loans exist, and what lenders expect to see before they say yes.

Before You Apply: Know Your Costs and Medical Practice Funding Needs

Lenders don’t just want to know how much you’re borrowing. They want a clear explanation of what it covers.

Common cost categories for your medical practice funding plan:

• Office lease, remodeling, utilities

• Medical equipment, supplies, and software

• Licensing, legal fees, and insurance

• Marketing, website, and branding

• Staff salaries, benefits, and onboarding

As of 2025, typical startup costs for new medical clinics fall between $152,000 and $285,000 for family or internal medicine practices. Specialty clinics often reach $250,000 to $450,000, while surgical practices may exceed $500,000. Clinics in Texas generally follow similar ranges, with location and buildout needs playing a major role.

Estimate each category carefully. Include everything in your business plan before applying for medical practice funding or a loan. A well-documented plan shows lenders that your medical practice funding request is grounded in reality.

How to Choose the Right Medical Practice Funding Source

Not all funding sources work the same way. Some give you more flexibility. Others come with strict repayment terms or added fees. The best option depends on how much you need, how soon you need it, and how stable your revenue will be in the first year.

Here are common funding sources for new medical clinics:

• SBA 7(a) loans – Backed by the Small Business Administration. Often used for startups. May offer lower rates but take longer to process.

• Medical equipment financing – Lets you fund large equipment purchases separately. Often easier to qualify for.

• Business lines of credit – Offers flexible access to funds as needed. Helpful for ongoing expenses.

• Traditional bank loans – May be available if you have strong credit or a prior relationship with the bank.

• Online or alternative lenders – Faster approvals, higher rates. Good for short-term needs or gaps.

Before applying, compare rates, terms, and fees. Ask each lender what documentation they require and how long approval takes. Don’t apply blindly. It’s better to prepare than to rush.

5 Steps to Take Before You Apply for Funding

Before reaching out to a lender, take time to prepare. A solid application depends on more than knowing how much money you need. Lenders want to see that you’ve planned ahead and understand what it takes to launch and operate a medical clinic in Texas.

Here are five steps to take before applying:

1. Build a detailed business plan

2. List your startup and operating costs

3. Estimate your first 12 months of cash flow

4. Check your personal and business credit reports

5. Organize your documents

1. Build A Detailed Business Plan

Your business plan should explain how your clinic will function. List the services you'll offer, how you plan to staff the practice, what your operating hours will be, and what kind of patient volume you expect. Be specific about your location and target population. If you're planning a family practice near a growing residential area, include data to support demand. If you're opening a specialist clinic, describe how you plan to attract referrals.

Financials matter here. Include revenue projections broken down by service type and average reimbursement. Don’t inflate the numbers – show a conservative baseline with room for growth. Reference known benchmarks from MGMA (Medical Group Management Association) or industry-specific sources when possible. The goal is to prove you’ve thought it through and have a reasonable, well-supported plan.

Break out everything you’ll need to get the doors open and keep them open for the first year. 

Startup costs often include:

• Lease deposits

• Interior buildout

• Medical equipment

• EHR software

• Legal and licensing fees

• Signage

• Branding

• Furnishings

Operating costs cover:

• Rent

• Payroll

• Insurance

• Software subscriptions

• Medical supplies 

• Utilities

• Marketing

Don’t guess. Get quotes from vendors, check local real estate listings, and research equipment pricing. If a new ultrasound machine runs $18,000 and a basic exam table is $2,500, include those numbers. Be honest about staffing costs, too – don’t assume you can hire for below market rate. An underpriced or incomplete cost list can raise red flags during the review process.

3. Estimate Your First 12 Months Of Cash Flow

A strong cash flow estimate shows that you understand the lag between services and income. Most insurance reimbursements don’t arrive for at least 30 days. Some take 60 or longer. If you’re relying on insurance-heavy revenue, your early months may run tight.

Build a monthly cash flow plan that accounts for these delays. Estimate your collections by payer type and project them across each month. Then layer in your fixed and variable expenses – rent, salaries, software, and utilities. Include line items for common surprises, like supply price increases or staffing gaps. If month three or four looks risky, address how you’ll handle it. Lenders will be looking for that answer.

4. Check Your Personal And Business Credit Reports

Most lenders will check both. If your business is new and doesn’t have credit history, your personal credit will carry more weight. Pull your reports from the major bureaus and check for any issues that could create concern – late payments, high credit utilization, or unresolved accounts.

If there’s time to improve your score, do it. Pay down balances, catch up on missed payments, and avoid applying for other new credit in the short term. You may also be asked to provide recent tax returns or proof of income. These records help fill in the financial picture if your credit file is thin.

5. Organize Your Documents

Every lender has different requirements, but most will ask for tax returns, licenses, financial statements, a business plan, your lease or LOI, vendor quotes, and corporate formation documents. Some may also request bank statements, a list of business assets, or proof of malpractice insurance.

Create a folder for your funding documents – digital and physical – and label everything clearly. If a lender asks for additional information, you should be able to send it within a day. Delays caused by missing paperwork can slow down approval or hurt your credibility as a borrower. Good organization signals that you’re ready to manage the day-to-day work of running a clinic.

Texas Medical Licensing Requirements and Costs

Before you apply for funding or move forward with your launch, you’ll need to meet state licensing requirements. These approvals can take time and should be included in both your startup budget and your overall timeline.

Timelines vary by agency, but delays are common – especially for first-time applicants. Starting this process early will prevent licensing hold-ups from stalling your funding or opening date.

How to Compare Medical Practice Funding Offers

Once you’ve received one or more loan offers, take time to compare the details side by side. Don’t default to the lender with the fastest approval or lowest monthly payment. Focus on long-term impact.

Start by reviewing the interest rate, repayment term, and total repayment amount. Then look for fees – especially origination fees, late penalties, and prepayment restrictions. Some lenders also require a personal guarantee or collateral.

If the rate seems low, check how it’s structured. Variable rates can rise over time. If the loan is short-term, make sure the monthly payments won’t put too much pressure on your early cash flow.

Ask each lender for a complete breakdown of costs. You can also request a sample amortization schedule to see how payments will look over time.

Take your time. It’s better to ask questions now than deal with surprises once payments begin.

Securing Funding for Your Texas Clinic

The application itself isn’t the hard part. What matters is how well you’ve planned – your cost breakdown, cash flow, and the documents to back it all up. Lenders aren’t looking for perfection, but they do expect clarity and follow-through.

Every number should make sense. Every decision should have a reason behind it. That level of preparation can shorten approval timelines, improve your loan terms, and keep your launch on track.

If you're serious about opening your clinic, the funding process should reflect it.

See What Patient Volume Your Clinic Can Support

Before you apply for funding, it helps to know whether your practice model actually makes financial sense. Use our free calculator to run the numbers.

This article was originally written in March of 2019 and was recently updated to reflect current industry trends.