# A R$ 20 Million Contract: Plan Disbursements by Stage | KEZ$

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Learn to schedule contract costs, negotiate payment milestones, and calculate the cash needed between completing each stage and collecting payment.

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# A R$ 20 Million Contract: Plan Disbursements by Stage

Learn to schedule contract costs, negotiate payment milestones, and calculate the cash needed between completing each stage and collecting payment.

KEZS team · Educational guide

[contract execution](https://kezs.com.br/en/learn?tag=contract%20execution)[disbursement planning](https://kezs.com.br/en/learn?tag=disbursement%20planning)[working capital](https://kezs.com.br/en/learn?tag=working%20capital)[cash flow](https://kezs.com.br/en/learn?tag=cash%20flow)[payment milestones](https://kezs.com.br/en/learn?tag=payment%20milestones)[receivables management](https://kezs.com.br/en/learn?tag=receivables%20management)[cost control](https://kezs.com.br/en/learn?tag=cost%20control)

[← Contracts and orders](https://kezs.com.br/en/learn/contracts-and-orders)[1. The contract is worth R$ 20 million, but how much cash does it need before it pays?](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-1)[2. Turn contractual obligations into measurable stages](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-2)[3. Build a budget that reflects actual cash outflows](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-3)[4. Schedule the R$ 15 million around the work](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-4)[5. Calculate the cumulative balance before choosing funding](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-5)[6. The actual peak depends on payment order](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-6)[7. Separate company funds, committed funding and contingency capacity](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-7)[8. Model funding draws and repayments through execution](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-8)[9. Include financing costs and their payment deadlines](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-9)[10. Test an acceptance delay before it occurs](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-10)[11. Distinguish delays, cost overruns and scope changes](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-11)[12. Negotiate timing with operational evidence and numbers](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-12)[13. Establish receivables through evidence, beyond the invoice](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-13)[14. Match the instrument's rights and obligations to the cash gap](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-14)[15. Assign cash responsibilities and rules for resolving disagreements](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-15)[16. Close each stage by reconciling work, money and remaining risk](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#topic-16)[Frequently asked questions](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#faq)[References](https://kezs.com.br/en/learn/contracts-and-orders/a-r-20-million-contract-plan-disbursements-by-stage#references)

What you will find 

A large contract can increase revenue while putting pressure on the company's cash. Obligations to purchase, manufacture, install equipment or mobilize people often arise before the right to invoice. Even after delivery, payment may depend on progress assessment, customer acceptance, a correctly issued Brazilian tax invoice and the customer's processing procedures. The entrepreneur's task is therefore broader than estimating whether the contract will make a profit. It is necessary to establish how much must be paid, in what order, and how long each payment will need support from the company's own money or external funding.

01 

## The contract is worth R$ 20 million, but how much cash does it need before it pays?

Consider a company hired to supply and install equipment for R$ 20 million. This amount, and every cost, period and financing charge in this article, is hypothetical. None represents a commercial offer, market rate or completed transaction. The work is divided into partial deliveries, with operating cash outflows of R$ 15 million and customer payments spread across execution. The R$ 5 million difference is the estimated result before the financing costs used in the example. It depends on meeting the budget and contractual requirements; signing the contract does not establish that this result has been earned.

The useful question is no longer how much it costs to finance R$ 20 million. It is how large the gap between outgoing and incoming cash becomes, and which conditions could widen it. This avoids arranging funding based on the entire order value or treating contracted revenue as available money. Planning must follow every delivery through to collection, including the interval when the company has completed its work but is still waiting for documentary validation or payment. A profitable forecast can coexist with an immediate inability to pay a supplier.

02 

## Turn contractual obligations into measurable stages

Before building the financial forecast, divide the scope into packages that can be verified. Each stage should specify the deliverable, the evidence of completion, who has authority to accept it and the amount that becomes billable. Phrases such as satisfactory delivery or full completion can leave room for interpretations that change the cash timetable. In this example, supply and installation have five commercial milestones, while preparation, purchasing and execution generate cash outflows from the beginning. A milestone is useful only if the parties understand what must happen before the associated charge is recognized.

The first milestone allows R$ 2 million to be billed for a partial delivery completed in month 1. The second releases R$ 5 million in month 3; the third, R$ 5 million in month 4; the fourth, R$ 6 million in month 5; and the last, R$ 2 million in month 6. The planning assumption is that each accepted milestone is paid in the following month. Collections therefore occur in months 2, 4, 5, 6 and 7. This assumption is defensible only when the acceptance procedure and payment period agree with the contract.

Commercial milestones need not duplicate the technical sequence, but the two must connect. Purchasing a component does not necessarily create a billable delivery. Completing an installation may still leave an inspection report outstanding. For each package, record earlier dependencies, required documents and the expected review period. This identifies costs incurred early and deliverables that take longer to become receivables. It also gives the company a chance to negotiate a better arrangement while changes remain possible, rather than discovering the mismatch after purchase commitments have become binding.

03 

## Build a budget that reflects actual cash outflows

The hypothetical R$ 15 million operating budget comprises R$ 7 million for equipment and materials, R$ 4 million for employees and contractors, R$ 1.5 million for logistics and installation, R$ 1 million for estimated taxes, and R$ 1.5 million for overhead and support attributable to the contract. These are arithmetic assumptions, not tax guidance or benchmarks. The applicable Brazilian tax classification and calculation require assessment for the actual business and transaction. The purpose is to include obligations that consume cash even when they are absent from the main supplier quotation.

Payment timing matters as much as the amount. A R$ 1 million purchase with a R$ 400,000 advance and the balance due on delivery creates two cash outflows, rather than one expense in the month the item is used. Payroll, freight, insurance, storage and travel can fall due at different times. Separate costs exclusive to the contract from shared expenses. If the existing business already pays part of the overhead, allocating that cost economically to this project does not automatically create an additional payment in the same month. Both views matter, but they answer different questions.

For clarity, the example's R$ 15 million represents expected operating cash payments, including the overhead portion the project will actually bear. No additional tax withholdings, recoverable tax credits or reimbursements exist outside the stated figures. In a real contract, show these effects separately, with someone responsible for them and an expected realization period. A spreadsheet that counts the gross invoice amount as a cash receipt while ignoring deductions or withholding can appear balanced and still conceal a funding shortage. Each budget line should therefore explain what will leave or reach the bank account.

04 

## Schedule the R$ 15 million around the work

The base schedule provides for disbursements of R$ 2 million in month 0, R$ 3 million in month 1, R$ 3 million in month 2 and R$ 3 million in month 3. It then provides for R$ 2 million in month 4, R$ 1.5 million in month 5 and R$ 500,000 in month 6. There is no operating disbursement in month 7. These amounts total R$ 15 million. The first four periods account for R$ 11 million because mobilization, material purchasing and team preparation precede a substantial portion of customer collections.

Read this schedule as obligations with payment deadlines, rather than an even division of the budget. Month 0 may involve reserving manufacturing capacity, preparing the site and mobilizing personnel. Purchasing and execution overlap in months 1 to 3. Installation, completion and delivery-related support continue in months 4 to 6. Internal management needs the detailed composition, but the totals already show why dividing R$ 15 million equally across the months would give a misleading estimate. An average monthly cost would smooth away the early concentration that creates the financing requirement.

Classify each amount as already paid, contractually committed but not yet due, or estimated and not yet contracted. This distinguishes a possible saving from a payment merely postponed. An order placed with a nonrefundable deposit cannot be treated as freely cancelable spending. A purchase still at the quotation stage may allow changes to batch size, timing or supplier. The schedule becomes useful when it identifies rigid outflows and those that can better follow physical progress. Any proposed adjustment must also preserve the resources needed to deliver the next billable stage.

05 

## Calculate the cumulative balance before choosing funding

Combine those disbursements with receipts of R$ 2 million in month 2, R$ 5 million in month 4, R$ 5 million in month 5, R$ 6 million in month 6 and R$ 2 million in month 7. Starting from zero and excluding financing, the cumulative balance at each period end is negative R$ 2 million in month 0, negative R$ 5 million in month 1, negative R$ 6 million in month 2 and negative R$ 9 million in month 3. Work is advancing, but the contract still relies on money provided earlier by the company or third parties.

The cumulative balance then ends month 4 at negative R$ 6 million and month 5 at negative R$ 2.5 million. It becomes positive R$ 3 million at the end of month 6 and positive R$ 5 million at the end of month 7. The arithmetic reconciles: R$ 20 million collected minus R$ 15 million disbursed. However, the full R$ 5 million only appears once collection is complete. Recognizing expected revenue in the accounts cannot make that money available to meet obligations falling due while operating cash remains negative.

The monthly view shows a maximum closing deficit of R$ 9 million in month 3. That is useful information, but insufficient for arranging coverage. Within a month, payments may precede receipts. A closing balance summarizes the period and hides the sequence that occurred inside it. After preparing the monthly view, examine critical weeks and individual payment deadlines. Size the cash requirement using the lowest balance actually expected along the way. A customer receipt late in a period cannot retrospectively fund an obligation that had to be settled earlier.

06 

## The actual peak depends on payment order

Use a conservative assumption to test the example: every month's operating payments occur before that month's expected receipt. At the start of month 4, the cumulative deficit is R$ 9 million. The company must pay another R$ 2 million before collecting that period's R$ 5 million. The temporary deficit therefore reaches R$ 11 million, then returns to R$ 6 million after collection. The contract requires coverage for R$ 11 million even though the worst monthly closing balance shows only R$ 9 million. The difference comes entirely from sequencing, without changing total revenue or cost.

That R$ 2 million difference can determine whether execution continues. A manager who arranges funding solely from month-end balances may discover that there is insufficient money to release a shipment needed for the next milestone. The expected receipt cannot settle an earlier payment deadline. A weekly forecast often exposes this problem; daily detail may be necessary around payroll, taxes, major deliveries or supplier releases conditional on payment. The appropriate level of detail follows the concentration of obligations and uncertainty, rather than a desire to make every spreadsheet equally elaborate.

There is no need to assume all outflows come first when reliable payment deadlines establish another sequence. The conservative assumption exposes a vulnerability; replace it with documented timing as evidence becomes available. Record order payment deadlines, probable acceptance timing, invoice processing and the customer's payment period. If an incoming payment depends on approval not yet obtained, retain that dependency in the forecast. Treating an uncertain deposit as available at the start of a month can artificially reduce the peak and suggest a level of security the contract does not provide.

07 

## Separate company funds, committed funding and contingency capacity

Suppose the company can allocate R$ 3 million of its own funds without taking money needed for other obligations. With an operating cash peak of R$ 11 million, the base case requires another R$ 8 million. The entrepreneur also plans R$ 1 million of additional capacity for defined deviations, and therefore seeks a structure allowing access to up to R$ 9 million externally. This is a calculated requirement. It does not mean any provider will approve that amount, that suitable funding exists, or that the entire amount would be available without conditions.

The company's R$ 3 million must actually exist and have a source compatible with the operation. A bank balance already committed to another contract, general payroll or an overdue obligation is not free capital for this project. Likewise, a conversation with a potential funder is not a committed facility. Include external coverage in the execution plan together with its conditions: when it can be drawn, the documents required, events allowing suspension and obligations that could trigger accelerated repayment. Funding that arrives after the critical payment is due does not cover that payment.

The R$ 1 million contingency represents planned capacity beyond the base case's maximum external use of R$ 8 million. It is neither an expense already incurred nor an addition to profit. If accessing it requires fresh approval, present it as uncertain. Avoid counting a resource twice: cash blocked as collateral cannot simultaneously pay a supplier. Show unrestricted money, conditional funding and blocked collateral separately. This distinction also makes the contingency test meaningful, because nominal capacity has little practical value if its release conditions cannot be met when the deviation occurs.

08 

## Model funding draws and repayments through execution

To illustrate the mechanics, assume external funds can be drawn and repaid as needed. Of the company's initial R$ 3 million, R$ 2 million pays for month 0 and R$ 1 million stays in cash. In month 1, the company uses that remaining balance and borrows R$ 2 million to meet the scheduled R$ 3 million payment. In month 2, it draws another R$ 3 million before collection. Outstanding debt reaches R$ 5 million, then falls to R$ 3 million when the first milestone's R$ 2 million arrives.

In month 3, another R$ 3 million draw raises outstanding funding to R$ 6 million. Month 4 requires another R$ 2 million before collection, taking external use to its R$ 8 million peak. The R$ 5 million receipt reduces the balance to R$ 3 million. In month 5, a R$ 1.5 million draw increases debt to R$ 4.5 million; collecting R$ 5 million allows full repayment and leaves R$ 500,000 in cash. This sequence depends on the contractual freedom to draw, repay and draw again assumed here. A facility with different restrictions would require a different simulation.

In month 6, that R$ 500,000 pays the final operating outflow, and the R$ 6 million receipt remains in cash. The last R$ 2 million collected in month 7 brings cash to R$ 8 million before financing costs. That balance includes recovery of the company's initial R$ 3 million and the estimated R$ 5 million operating result. Calling all R$ 8 million profit would be incorrect. Part merely returns company capital tied up during execution. The model must keep funding principal, repayment, operating receipts and profit distinct so the final bank balance is interpreted correctly.

09 

## Include financing costs and their payment deadlines

Add a purely arithmetic assumption: R$ 180,000 in fixed charges and R$ 320,000 in interest on funds used, totaling R$ 500,000. To preserve the sequence already demonstrated, assume the full amount is paid in month 7. This is not a rate estimate, quotation or available financing condition. Under this assumption, the contract's estimated result falls from R$ 5 million to R$ 4.5 million. Final cash falls from R$ 8 million to R$ 7.5 million, including recovery of the company's initial R$ 3 million. The interest amount is an assumption, not a calculation from an implied market rate.

If charges fall due earlier, the peak funding requirement changes. A fee deducted when funds are released reduces the amount actually received. Monthly interest creates additional outflows during execution, while a holdback in a restricted account limits use of the contracted amount. Comparing proposals solely by nominal funding size is therefore inadequate. Compare net proceeds, each payment deadline, the balance used to calculate charges and the effect of customer delay on total cost. A larger stated facility can provide less usable cash at the critical point if deductions and restrictions are substantial.

Examine documentation, collateral, assessment and early termination costs where applicable. Some are payable even when little capital is drawn; others increase with duration. The decision requires a forecast after charges and an understanding of each party's rights. Contracting R$ 9 million of capacity, for example, may cost differently from using a maximum of R$ 8 million. The answer depends on the instrument and negotiated terms. If the contingency itself has a charge, include that payment in the forecast rather than assuming unused capacity is necessarily free.

10 

## Test an acceptance delay before it occurs

Consider a specific deviation: the R$ 5 million expected in month 4 arrives only in month 6, while every other receipt and disbursement stays on schedule. A disputed progress assessment or documents requiring correction could cause this delay. At the end of month 3, the operating deficit is still R$ 9 million. Without the month 4 receipt, that month's R$ 2 million outflow raises the deficit to R$ 11 million, which now remains outstanding at period end. Unlike the base case's temporary peak, this gap continues into the next month.

Before collecting month 5's scheduled R$ 5 million, the company must pay another R$ 1.5 million. The operating deficit reaches R$ 12.5 million. With R$ 3 million of company funds, required external use becomes R$ 9.5 million. Planned capacity of R$ 9 million leaves a R$ 500,000 shortfall, even after using the entire contingency. Calling a reserve comfortable without testing a specific event does not establish whether the contract can withstand a material delay. Here, the test identifies both the size of the uncovered amount and the point when it is needed.

After the month 5 receipt, the operating deficit falls to R$ 7.5 million. In month 6, R$ 500,000 goes out and R$ 11 million comes in: the delayed R$ 5 million plus the R$ 6 million milestone payment. Cash recovers, but the company first has to cross the earlier gap. Longer use of funding may also increase charges, which are not recalculated in this scenario. Assess possible responses in advance: bring forward a payment, renegotiate disbursements or obtain additional coverage. None should be assumed available or accepted merely because the forecast needs it.

11 

## Distinguish delays, cost overruns and scope changes

A collection delay can leave nominal revenue unchanged while increasing financing costs. A cost overrun reduces the result even when the customer pays on time. A scope change can create expenditure without an automatic right to additional payment. Treating all three as generic cash variations makes corrective action harder. Record what happened, which party caused it, whether a contractual provision applies and which amounts both parties recognize. The appropriate response depends on the event: chasing an invoice will not recover an unapproved scope addition, and a revised cost budget will not resolve missing acceptance.

Consider R$ 600,000 of rework in month 4 as an isolated scenario, with base-case customer payments unchanged. Total operating cost increases from R$ 15 million to R$ 15.6 million. Before that month's receipt, the operating cash peak rises from R$ 11 million to R$ 11.6 million. With R$ 3 million of company funds, external funding of R$ 8.6 million is needed. The hypothetical R$ 9 million capacity covers this event but leaves only R$ 400,000 unused. The result before financing costs falls to R$ 4.4 million. Any resulting change in financing charges needs separate calculation.

If delay and rework occur together, combine their effects in a new projection. Testing each separately does not establish that both can be absorbed at once. Do not add revenue for an extra order simply because the sales team expects customer agreement. Until the change is appropriately formalized, expenditure may create exposure without a recognized payment entitlement. The decision to proceed should consider that risk, internal authority limits and whether only the additional work can be paused under the contract. Keep the original obligations visible while assessing the disputed or proposed addition.

12 

## Negotiate timing with operational evidence and numbers

Effective negotiation explains why a particular payment enables a particular delivery. If equipment requires a manufacturing reservation before installation, propose a milestone supported by suitable evidence, such as order confirmation, inspection or an identifiable delivery, where the contract permits. The customer may resist paying before receiving goods and has a legitimate interest in controlling performance. Connect disbursement, risk assumed, documentation and operational benefit. Simply presenting the supplier's funding need is unlikely to resolve how the parties should share exposure or verify that an earlier payment serves the agreed scope.

In the base case, moving R$ 2 million from the final installment to a point before month 4's disbursements would reduce the operating peak at that point from R$ 11 million to R$ 9 million, with all other conditions unchanged. Total contract value remains R$ 20 million, and the final installment falls from R$ 2 million to zero. The improvement depends on the exact receipt timing. Moving that payment to after month 4's outflows would not remove the same peak, although it could shorten funding use. Earlier periods must still be checked to confirm the overall maximum.

Supplier negotiations can also help through smaller batches, a balance linked to delivery or adjusted payment deadlines. Longer terms may mean losing a discount, paying a higher price or receiving lower manufacturing priority. Record the complete trade-off. If extending terms adds a hypothetical R$ 120,000 to the price, compare that amount with expected financing savings and the operational risk introduced. An agreement improves the contract only when its combined effects on cash, cost and delivery capacity are favorable. Reducing one month's deficit at the expense of a missed milestone may simply move or enlarge the problem.

13 

## Establish receivables through evidence, beyond the invoice

A signed contract value does not immediately become a receivable available for any funding transaction. Future deliveries depend on execution, and invoiced installments may still face disputes, holdbacks or other conditions. For each milestone, maintain an evidence trail connecting obligation, performance, progress assessment, acceptance and billing. Depending on the contract, this may include the purchase order, scope version, delivery receipt, installation record, technical report, acceptance communication and corresponding Brazilian tax invoice. The required package follows the actual transaction; issuing an invoice alone may leave important conditions unfulfilled.

An organized record helps answer questions affecting timing: who accepted the work, whether that person had authority, how much was approved and whether acceptance included reservations. If the customer rejects part of a progress assessment, distinguish the undisputed amount from the contested portion and examine the applicable procedure for each. Do not keep the full receipt in the forecast merely because the team expects agreement. Update the probable receipt and assign responsibility for resolution. Preserve evidence and avoid contradictory document versions, especially when technical, commercial and financial teams are communicating with different customer representatives.

Any proposed receivables transaction requires assessment of the credit's existence, eligibility, assignability, earlier commitments and consequences of nonpayment under the chosen structure. Hoped-for sales are different from established, eligible receivables. The same right must not be offered incompatibly to multiple parties. Documentation supports analysis but cannot guarantee payment or eliminate fraud and disputes. Share personal data and confidential documents only with limited access, a defined purpose and appropriate protection. A potential funder's need for evidence does not justify unrestricted distribution of the customer's or contractor's private information.

14 

## Match the instrument's rights and obligations to the cash gap

After measuring the gap, examine which structure could cover it. A loan creates repayment obligations under its terms. A receivables transaction depends on the underlying credits and may leave the company responsible for specified risks or nonpayment. Equity grants rights in the business and introduces governance considerations; it does not automatically follow a debt repayment timetable. A convertible instrument may begin with particular obligations and provide for conversion under defined conditions. A product's commercial name cannot replace an examination of these effects. Each structure distributes control, claims, uncertainty and potential loss differently.

For a temporary need tied to identifiable deliveries, assess whether funding release, customer receipts and payment deadlines align. An obligation maturing before the main acceptance milestone can turn a workable contract into an urgent refinancing problem. Bringing in equity partners for a short cash gap can have lasting ownership consequences. There is no universal choice. Consider complete cost, collateral, control, ability to absorb losses and permitted use of funds. Brazilian business form also matters: a MEI cannot admit equity partners while remaining a MEI. The structure must fit both the cash need and the entity's legal position.

A donation to a nonprofit is not an equity investment and must not be presented as a promise of financial return. Public securities distribution and regulated financial activities require appropriate structures and providers; technology or a CNAE business activity classification is not permission to perform them. Urgency does not remove these distinctions. Legal and financial advice should address the actual instrument, participants and obligations. No option guarantees approval, repayment, profitability, liquidity or preservation of capital. Assess what happens if collections fail or execution stops, including which party bears the loss and what enforcement rights may apply.

15 

## Assign cash responsibilities and rules for resolving disagreements

The execution lead reports physical progress, obstacles and rework. Purchasing confirms orders, cancellation terms and payment deadlines. Finance consolidates balances, payments and funding conditions. Sales tracks commitments and negotiates customer changes. Legal support examines contractual consequences when needed. Make these responsibilities explicit even in a small business where one person performs several roles. Otherwise, each function may work from a different version of the same milestone. Assigning a responsible person also identifies who must obtain missing evidence, challenge an assumption or escalate a deviation before it blocks the next payment.

Resolve disagreements through evidence and impact. Execution may report that a stage is complete while finance reports missing acceptance. Both can be correct: physical completion has occurred, but the billing condition remains unmet. Record both states and identify the outstanding document. If purchasing proposes a larger batch for a discount, show both the saving and the earlier cash requirement. Management should decide using the whole contract, with approval limits proportionate to the effect. Decisions should recognize incentives as well: a local cost saving or sales commitment can create funding pressure elsewhere in the project.

KEZS connects entrepreneurial projects and potential funders through technology and intermediation. The potential usefulness of this method depends on presenting purpose, stages, budgets, evidence and risks clearly enough to support informed discussion. Transparent documentation can help, but investors conduct their own diligence and make their own decisions; KEZS does not assign a credit score. Relevant conflicts of interest, remuneration and information sharing need to be explained. Intermediation does not establish approval, funding availability or a guaranteed result. A clear project presentation should make uncertainty and costs visible alongside the reasons someone might consider providing funds.

16 

## Close each stage by reconciling work, money and remaining risk

At every review, compare three records: work performed, amounts recognized for billing, and money actually received or paid through the bank. Update verified facts first, then forecasts. If a supplier's amount rises from R$ 800,000 to R$ 900,000, reflect the change in total cost and the relevant payment deadline. If a receipt moves between periods, preserve the change history and recalculate the lowest balance. Silently overwriting the original forecast removes the evidence needed to understand why the plan failed. A useful revision explains the changed assumption and its consequences for remaining execution.

Common errors require specific corrections. Revenue counted twice through an invoice and its receipt needs reconciliation by installment. Omitted withholding requires separate gross and net amounts. A payment scheduled twice needs a unique obligation identifier. An unbudgeted cost needs its source, approval and effect on the remaining cost to complete recorded. Keep this contract's cash requirements distinguishable from those of other business activities. Withdrawing money whenever an installment arrives can recreate a deficit the projection had already solved, particularly when the receipt is intended to fund work that has not yet been paid for.

Before authorizing the next stage, confirm unrestricted cash, commitments due before the next collection, outstanding conditions and the relevant delay scenario. The example's estimated R$ 4.5 million result after base financing costs is achieved only if costs, deliveries and collections follow the assumptions. Closure requires reconciliation of the final installment and identification of remaining support or contractual warranty obligations. Planning disbursements by stage means keeping execution financially supportable through that point, with documented decisions when reality differs from the agreement. The final receipt closes a collection sequence; it does not automatically extinguish every remaining obligation.

FAQ 

## Frequently asked questions.

### Why is setting aside the contract's R$ 15 million cost not enough as a planning method?

Total cost and cash requirement measure different things. Intermediate customer receipts help pay later expenses, so this example's maximum operating coverage is R$ 11 million when outflows precede inflows. With R$ 3 million of company funds, maximum external use is R$ 8 million in the base case. Reserving funds solely from total cost may tie up money unnecessarily, while using only the worst month-end deficit can leave a shortage within the period. The correct amount depends on the actual sequence and reliability of receipts. It also needs revision if charges, restrictions or execution assumptions change.

### Should a customer advance be treated as profit available for withdrawal?

No. An advance improves cash but normally relates to obligations still to be fulfilled. Its use must follow the scope, contractual conditions and possible consequences of cancellation or nonperformance. Before taking money out of the project, recalculate remaining disbursements and receipts that are still conditional. A positive balance immediately after an advance can coexist with a later deficit. Money in the account does not, by itself, establish earned profit or funds available for distribution. The company must also consider any restrictions or repayment obligations attached to that advance.

### Is paying suppliers upfront for a discount the better choice?

It depends on the complete effect. A discount reduces cost, but earlier payment may increase peak borrowing, financing charges and exposure to supplier delay. Compare two schedules for the same scope: advance payment with the discount, and installments at their corresponding price. Include usable cash, financing costs and the consequences of failed delivery. If upfront payment consumes the capacity needed for payroll or stage completion, the price saving may not justify it. The comparison should show whether the saving survives the extra funding cost and whether the business can still meet critical obligations.

### What should the company do when delivery is complete but the customer has not accepted it?

Identify the specific outstanding condition and gather evidence of performance. Check who may accept, which documents were submitted, and whether the issue is technical or merely awaiting processing. Update expected collection timing while resolving it. Where one portion is recognized and another disputed, assess separate treatment under the contract. Pressing for payment without correcting documents can prolong the impasse. Performing extra work to obtain acceptance also requires checking whether an obligation and formalized payment entitlement exist. Keep physical completion and contractual acceptance visible as separate facts.

### Would the example's R$ 1 million contingency cover any unexpected event?

No. It is a hypothetical planning decision and fails when the R$ 5 million due in month 4 arrives only in month 6. Required external use rises to R$ 9.5 million, exceeding planned capacity of R$ 9 million by R$ 500,000. Test the contingency against identifiable events, including combined delays and overruns. Confirm whether it can be accessed under the same conditions as the remaining funding. An amount requiring future approval is not equivalent to unrestricted cash or a binding release commitment whose conditions have already been satisfied.

### Does recording documents on a blockchain make the contract safer to finance?

Depending on implementation, a record may help demonstrate the integrity or sequence of particular information. It does not establish that delivery occurred, the document is truthful, legal title is valid, reserves are solvent or payment will happen. Private documents should not be placed on public blockchains. Analysis still depends on contracts, evidence, access controls and independent verification. For disbursement planning, information must be reliable, protected and usable in decisions. A tamper-resistant record of an incorrect statement remains an incorrect statement, so recording cannot replace checking the underlying event or right.

### What practical decision should the first schedule review produce?

The company should be able to state what it must pay before the next reliable receipt, the largest projected deficit and the source of coverage. In the base case, the critical point requires R$ 11 million of operating coverage: R$ 3 million from the company and R$ 8 million externally, before contingency capacity. If coverage is not secured on the required terms, the review should produce a concrete adjustment: renegotiate milestones, reschedule purchases or adapt execution within contractual possibilities. An expectation of raising funds cannot substitute for that decision or establish that the next stage is affordable.

## References and context

Institutional reference points for checking applicable rules and guidance. Calculations and scenarios are original examples, not quotes, historical results or individualized recommendations.
- [Banco Central — correspondentes no País ↗](https://www.bcb.gov.br/estabilidadefinanceira/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20CMN&numero=4935)
- [CVM — Resolução 88, texto e alterações ↗](https://conteudo.cvm.gov.br/legislacao/resolucoes/resol088.html)
- [CVM — Resolução 175, fundos de investimento ↗](https://conteudo.cvm.gov.br/legislacao/resolucoes/resol175.html)
- [Portal do Empreendedor — perguntas sobre MEI ↗](https://www.gov.br/empresas-e-negocios/pt-br/empreendedor/perguntas-frequentes)
- [ANPD — orientações e perguntas frequentes ↗](https://www.gov.br/anpd/pt-br/acesso-a-informacao/perguntas-frequentes)

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Contracts and orders 

### Funding a Contract Before You Get Paid: How to Deliver Without Losing Control of Cash

Learn to calculate a contract’s funding gap, negotiate payment terms, document execution risks, and manage cash from delivery through collection.Explore the article ↗  ](https://kezs.com.br/en/learn/contracts-and-orders/funding-a-contract-before-you-get-paid-how-to-deliver-without-losing-control-of-cash)

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Contracts and orders 

### Budgeting a Large Order: Costs, Delivery Milestones and Cash Collection

Learn to budget a large order, link costs to delivery milestones and calculate the cash needed through production, customer acceptance and payment.Explore the article ↗  ](https://kezs.com.br/en/learn/contracts-and-orders/budgeting-a-large-order-costs-delivery-milestones-and-cash-collection)

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Contracts and orders 

### Contract Receivables: How to Establish Existence, Acceptance and Payment Conditions

Learn when a contract creates a receivable, how to document delivery and acceptance, and how to plan costs and cash needs before payment arrives.Explore the article ↗  ](https://kezs.com.br/en/learn/contracts-and-orders/contract-receivables-how-to-establish-existence-acceptance-and-payment-conditions)

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