Signing an order does not automatically put the money needed to deliver it into your account. Before receiving payment, your business may need to buy materials, reserve equipment, pay outside teams, transport goods, and correct defects. Some bills fall due before the customer acknowledges completion. The central challenge is sustaining those commitments until the contracted revenue actually becomes available.
A profitable project can still run out of money
Margin tells you what remains after costs. Cash flow tells you whether money will be available when each payment falls due. A service sold for R$120,000 with projected costs of R$90,000 has an expected result of R$30,000 before additional expenses. It may nevertheless require R$60,000 in temporary funding if most costs fall due before the customer's final installment. Positive margin does not close that timing gap.
Subcontracting adds another dependency: your delivery promise rests partly on businesses with their own cash constraints, capacity limits, and schedules. Late materials can leave a hired crew idle; a disputed progress assessment can interrupt a subcontractor's payment. A bank balance alone cannot show these relationships. Planning must connect money, materials, people, delivery evidence, and the conditions for collecting payment.
This article uses one hypothetical project to connect those decisions. Every amount and relative day is an arithmetic assumption, rather than a market benchmark, financing offer, or legal condition. The method turns an execution plan into commitments you can examine: who delivers, what must happen first, when obligations fall due, and which resources will support the project until payment arrives.
Break the contract into work packages you can purchase and verify
Before requesting quotations, translate the main contract into work packages. For a commercial installation, equipment, assembly, configuration, testing, and documentation may involve different suppliers. Specify quantities, technical requirements, location, deadlines, and completion criteria for each package. Someone should be able to inspect the result without relying on the negotiator's memory. Phrases such as complete service or premium materials leave costly room for disagreement.
Then identify the interfaces. Does installation depend on infrastructure being ready? Must equipment arrive before configuration? Who supplies consumables, tools, movement within the site, and waste removal? Costs often appear between contracts when two businesses each believe the other is responsible. A short, clear allocation of responsibilities can prevent more loss than a small reduction in quoted prices.
Some activities may warrant direct control, especially those that determine customer acceptance, hold critical knowledge, or require a rapid response. Subcontracting can add capacity and specialist skills, but also requires coordination, supervision, and a replacement plan. Buying a defined result works best when you can specify that result. Buying hours requires different controls because effort can increase without producing an acceptable delivery.
Make the budget reflect these choices. A quotation including testing cannot be compared directly with one excluding it. Establish a common scope, record exclusions, and cost the activities your own company retains. Otherwise, adding the quotations produces a misleading total: it measures the offers received while leaving gaps in the actual work needed to complete the project.
Distinguish commitments, payments, and collections
A purchase passes through a request, approval, order, delivery, inspection, billing document, and payment. Cash changes at the last stage, but a commitment may arise much earlier. Watching only the bank statement makes money already allocated to approved orders look available. Track contracted amounts that remain unpaid, including installments dependent on measured progress, alongside actual cash movements.
On the customer side, distinguish a signed contract, completed work, accepted delivery, issued billing, and collected cash. Each transition may require different evidence. A Brazilian tax invoice, or nota fiscal, alone may not resolve a contractual acceptance issue. It also does not turn a hoped-for sale into an existing eligible receivable. The right's existence, enforceability, and possible transferability require examination in the specific case.
For each outflow, record the amount, due point, responsible person, payment condition, and consequences of delay. For each inflow, record the billing trigger, review period, payment period, and possible retentions or offsets. A single column labeled payment term is insufficient. Thirty days after acceptance starts from a different event than thirty days after billing, even when both initially suggest the same expected collection day.
Preserve the original commitment when revising a forecast. Record the new expected payment point and why it changed. If customer review of documentation takes longer, move the projected inflow even if the desired completion target remains unchanged. A useful forecast follows the probable path of the money and makes revisions traceable, allowing decisions to reflect current evidence without rewriting the original plan.
The complete example: contract, costs, and execution terms
Consider a business contracted to supply and install a solution at commercial premises for R$120,000. The customer pays R$30,000 on day 0 and R$90,000 on day 75. Physical delivery is planned for day 40, acceptance for day 45, and final payment thirty days after acceptance. All days run from the project's start. The base case assumes the agreed scope is fulfilled and no payment is retained.
Materials cost R$42,000: R$18,000 paid on day 5 and R$24,000 on day 25. Subcontracting costs R$30,000: R$6,000 on day 10, R$12,000 on day 30, and R$12,000 on day 45. Internal costs allocated to the project total R$12,000, paid in three R$4,000 installments on days 15, 30, and 45. Transport and logistics require R$6,000 on day 40.
Total projected operating expenditure is therefore R$90,000: R$42,000 for materials, R$30,000 for subcontracting, R$12,000 internally, and R$6,000 for logistics. Against R$120,000 in revenue, that leaves R$30,000 before financing, contingencies, or changes. To keep the example self-contained, the R$90,000 includes every planned operating outflow attributed to this project, including the charges and expenses assumed in its hypothetical budget.
In practice, identify applicable taxes, travel, insurance, management, losses, and other obligations rather than allowing this simplification to hide them. Allocate shared costs consistently. If employees receive monthly pay, project allocations must connect with the actual payroll schedule and other work. An amount assigned to a project for margin calculations may leave the company's account at a different point, changing the funding requirement.
Use the cumulative balance to identify the funding gap
With no opening cash reserved and no external funding, the customer's R$30,000 leaves the project with R$30,000 on day 0. The R$18,000 purchase reduces it to R$12,000 on day 5. The subcontractor's advance leaves R$6,000 on day 10, and internal expenditure leaves R$2,000 on day 15. Looking only at completed payments could make this early sequence appear manageable.
The R$24,000 purchase on day 25 takes the projected balance to minus R$22,000. On day 30, R$12,000 for subcontracting and R$4,000 internally deepen the deficit to R$38,000. Logistics increase it to R$44,000 on day 40. The final R$16,000 of operating payments take it to R$60,000 on day 45. Receiving R$90,000 on day 75 then restores that amount and leaves R$30,000.
Those negative balances represent uncovered needs, rather than payments the project could actually make using its own receipts. The lowest point, minus R$60,000, establishes the base case's maximum funding requirement. Coverage first becomes necessary on day 25, before delivery. Although all planned operating expenditure has been paid by day 45, the capital remains tied up until the customer pays.
A business managing several contracts must combine their cash movements into one calendar. Another project's apparent surplus becomes available only after its own commitments are accounted for. Repeatedly using a new customer's advance to finish an earlier order can conceal a structural shortage. Project analysis explains where the need originates; the consolidated forecast shows whether the business can support the combined obligations.
Define the reserve explicitly and select suitable funding
The R$60,000 maximum assumes execution follows the plan. In this example, the company adds R$9,000 for operating deviations, bringing required net available resources to R$69,000. This is a hypothetical planning decision, not a recommended percentage. Connect the reserve to identified risks, such as exceptional freight, replacement parts, or additional mobilization, and assign responsibility and limits for its use.
Suppose a financing arrangement provides R$69,000 on day 0 and requires R$72,000 on day 75, including R$3,000 in total financing costs. Together with the customer advance, opening cash is R$99,000. After R$90,000 of operating payments, R$9,000 remains on day 45. The final customer payment raises cash to R$99,000 on day 75. Settling R$72,000 leaves a project cash result of R$27,000.
The unused R$9,000 reserve is not an additional expense. Financing costs reduce the projected result from R$30,000 to R$27,000; any reserve actually spent would reduce it further. Check that R$69,000 really means net cash received. Deductions at disbursement could leave less available than the advertised amount, creating a shortage even though the nominal financing figure appears to match the plan.
Compare net proceeds, timing, total cost, security, obligations, and consequences of late payment. A loan creates debt; a receivables transaction depends on specific rights and terms; equity changes ownership rights; a convertible combines contractual obligations with possible conversion under its terms. These structures are not interchangeable. Funding must fit the project's cash cycle and the business's structure, without assuming approval, repayment certainty, or capital availability.
Negotiate terms that reduce the gap without undermining delivery
Negotiate before accepting incompatible commitments. With the customer, discuss milestones representing delivered value: technical approval, arrival of identified materials, completed installation, or accepted testing. An intermediate installment can reduce the funding requirement if its trigger is clear and verifiable. Billing based solely on elapsed time may provoke conflict when physical progress falls behind the schedule, leaving the expected receipt uncertain.
Compare suppliers' prices and terms together. Suppose the R$24,000 materials purchase due on day 25 can instead be paid on day 80 for R$26,000. Other expenditure before customer payment would total R$66,000. After the R$30,000 advance, the maximum requirement before collection falls to R$36,000. Operating costs rise to R$92,000, leaving R$28,000 before financing costs.
This alternative preserves R$24,000 during execution for an additional R$2,000 purchase cost. Compare it with a fresh funding proposal based on the revised cash curve. Do not automatically retain the earlier R$3,000 financing cost: the amount and duration of funding have changed. Confirm that the supplier can still deliver and that payment on day 80 remains manageable if the customer's day 75 payment is delayed.
Avoid passing all pressure to the party least able to absorb it. A subcontractor financing wages before collection may increase prices, reduce its crew, or abandon the job. Link installments to genuine mobilization, verified progress, and correction of outstanding issues. A workable agreement allows the supply chain to perform while making costs and risks visible; an attractive payment term is of little use if it causes delivery to fail.
Select suppliers by the cost of reaching an accepted delivery
The lowest quotation may demand more funding and expose the project to greater loss. Full advance payment consumes cash before execution is demonstrated. A somewhat higher offer may include installation, testing, and replacement of defective items. Compare the cost of reaching customer acceptance: price, freight, applicable taxes, inspection, coordination, likely rework, timing, and the financing needed to support those commitments.
Make diligence proportional to the supplier's role. For an easily replaced component, confirm specifications, availability, and commercial terms. For a critical subcontractor, examine mobilization capacity, relevant experience, qualified technical responsibility where applicable, dependence on others, and the ability to correct faults. References and documents provide evidence, but they do not remove the need to monitor the actual work.
Request evidence that answers specific questions. An equipment list becomes more useful when availability is checked against your schedule. A sample test report shows how completion could be assessed. A site visit may reveal access restrictions missed in the quotation. Avoid collecting unnecessary personal documents or circulating complete supplier records to everyone involved. Give each role the information it needs for its task.
Check conflicts of interest as well. If a buyer receives a supplier benefit, apply clear disclosure and approval rules. A small company may be unable to separate all responsibilities, but another person can still review the justification, comparison, and payment details. Traceable decisions support scrutiny without replacing judgment. Record why a higher price, advance payment, or exception was considered justified and who accepted the resulting exposure.
Align the subcontract with the customer commitment
The main contract may demand performance absent from the subcontractor's offer. If customer acceptance requires an integrated test, commissioning assembly alone leaves a gap. Align scope, deadlines, documentation, quality, site access, and change procedures. This does not require copying every customer condition. It requires identifying the obligations that depend on the third party and establishing how they will be fulfilled.
Define who may authorize changes. A customer's employee may request extra work on site without authority to approve its price. If the subcontractor performs it and bills your business, you could bear a cost the customer refuses to recognize. Record the request, time and cost effects, competent approval, and order revision before execution, subject to urgent situations governed by an agreed procedure.
Advances, retentions, and progress payments need understandable rules. Specify evidence of mobilization, measurement methods, review periods, and dispute handling. A clause making subcontractor payment dependent on customer collection needs careful examination of practicality and validity within the contractual relationship. Its wording alone does not resolve risk allocation. Relevant Brazilian legal advice may be needed, particularly where obligations or remedies are uncertain.
Subcontracting does not automatically eliminate your company's responsibilities to customers, workers, data subjects, or other parties. Their extent depends on the activity and actual relationship. Budget for applicable obligations and necessary oversight, including document checks, safety monitoring, and defect handling. Contract management consumes time and money. Leaving it out of the budget can make outsourcing appear cheaper while transferring hidden work back to your team.
Prepare evidence that turns completed work into collectible payment
The example allows five days between physical delivery and acceptance. That assumes the business submits everything the customer needs to review. Missing reports, serial numbers, test records, or training evidence can leave an installed solution unable to trigger billing. Plan acceptance documentation together with procurement and subcontracting. Waiting until completion to assemble it can extend the funding period after the physical work has finished.
For each milestone, identify the evidence, its producer, required format, and recipient. Photographs can show visible conditions but cannot by themselves prove functionality or full compliance. A test report should identify the item, procedure, and result. The evidence should connect what was purchased, what was installed, and what the customer approved, making omissions or inconsistencies easier to resolve before acceptance.
Inspect incoming materials separately. Check quantity, condition, and specifications before incorporation where operationally feasible. Record incomplete deliveries and their schedule effects. Paying without checking can weaken your practical ability to obtain a correction. Conversely, withholding every installment over a minor discrepancy may worsen the dispute and interrupt supply. Assess the issue against the contract and its actual effect on delivery.
Keep versions and named record owners, restricting access to commercial or personal information. A digital history helps locate approvals but cannot make an incorrect statement true. Even blockchain integrity does not establish underlying truth, quality, legal ownership, or payment. Private documents should not be placed on public blockchains. Information protection belongs within project control, alongside the ability to find and verify evidence.
Test delays, retentions, and cost increases separately
The base case organizes execution; adverse scenarios reveal its limits. First, assume the final R$90,000 arrives on day 95 while the R$72,000 financing obligation remains due on day 75. Only the R$9,000 reserve would be available then, leaving a R$63,000 repayment shortfall. That operating reserve does not bridge a twenty-day delay in such a large receipt. Extending funding cannot be assumed.
Second, suppose the customer pays R$75,000 on day 75 and retains R$15,000 until day 100 over an outstanding issue. Adding the R$9,000 available produces R$84,000, enough to settle R$72,000 and leave R$12,000. Later receipt of R$15,000 restores the final balance to R$27,000 if no further expenditure arises. Temporary retention changes timing; a permanent deduction also reduces the project's result.
Third, assume R$8,000 of rework is paid before collection, with receipts unchanged. Operating costs rise from R$90,000 to R$98,000. Maximum funding needs before a reserve rise from R$60,000 to R$68,000, leaving only R$1,000 of headroom from the R$69,000 net financing. Holding financing costs at R$3,000 solely for this illustration, the final result falls from R$27,000 to R$19,000.
Do not add risks mechanically or assume independence. One defect could cause rework, delayed acceptance, and retention together. After isolating each effect, build a plausible combined scenario and choose responses: earlier inspection, an alternative supplier, renegotiated milestones, or reduced exposure before further purchasing. The exercise should support decisions, including reconsidering contract viability. A scenario matters because it exposes a dependency you can address or a loss you must recognize.
Resolve disputes while maintaining technical and financial control
Suppose the customer considers a test inadequate while the subcontractor says it completed the exact order. Separate three questions: was the requirement contracted, does the evidence satisfy it, and who bears any additional cost? Combining everything into a payment argument tends to harden positions. Gather the current specification, approved order, execution records, and a precise description of the disputed point.
Where contractually possible, distinguish undisputed work from the portion under review. Document that division and its billing implications. Do not assume the customer will accept partial payment; negotiate with authorized representatives. Likewise, do not automatically pass a customer retention to the supplier without checking whether it corresponds to that supplier's unfulfilled obligation. The same withheld amount can have different contractual grounds in each relationship.
Record proposed solutions with their cost, timing, and effect on collection. A modest additional test may economically resolve a disagreement, but it still needs an owner and a limit. Accepting every request simply to obtain payment can create a succession of unpaid extras. Professional legal advice can support decisions involving contractual interpretation while the technical team establishes what happened and what remains necessary.
Update cash projections immediately. If the dispute makes day 45 acceptance uncertain, the day 75 receipt is no longer a firm assumption. Finance needs that information while negotiation remains possible. Concealing an outstanding issue to preserve the appearance of progress creates a surprise at maturity, when options may be narrower and relationships strained. Forecast changes should follow the evidence even before the dispute has a final outcome.
Assign responsibilities and monitor a few useful signals
Even a small team needs distinct responsibilities. Project leadership confirms scope, progress, and change impacts. Procurement negotiates terms and keeps orders aligned with approvals. Technical supervision checks materials and services. Finance manages payments, forecasts, and collection. Management decides significant exceptions. One person may hold several roles, but each decision needs an identifiable owner so that gaps are addressed rather than assumed to belong elsewhere.
Before paying, match the authorized order, acknowledged delivery, and billing. A discrepancy does not necessarily indicate fraud: it could concern unplanned freight, partial quantities, or a registration error. It still needs clarification before release. Confirm bank-detail changes through a previously known channel, especially when urgent messages request them. This control protects the business's cash and the legitimate supplier from misdirected payments.
Monitor the lowest projected cash balance, unpaid commitments, estimated cost to complete, and amounts already eligible for billing. Include acceptance issues and critical purchases at risk of delay. These signals reveal more than a comparison of spending with the original budget. Low expenditure can mean execution has stalled while approved orders already commit most of the budget, leaving little genuine flexibility.
Hold short, regular reviews, increasing frequency near critical milestones. For each significant change, establish which assumption changed, its cost, affected timing, decision owner, and decision deadline. The purpose is useful coordination rather than lengthy reports. Information known to one person must reach the decisions it affects, whether those concern purchasing, mobilization, invoicing, or obtaining coverage for the cash gap.
Correct forecasting errors without concealing the revised position
One common error counts the same inflow twice: the forecast includes both the customer's final installment and proceeds from financing against that receivable, while omitting settlement or the receipt's contractual destination. Show the complete arrangement: net proceeds, costs, obligations, and treatment of customer payment. Where a receivable is assigned, check who collects it and how settlement occurs rather than assuming the company receives unrestricted cash twice.
Another error treats the reserve as available profit. The R$9,000 remaining before collection protects execution against deviations. Withdrawing it on day 45 weakens the response to a fault. Any distribution to owners or transfer to another project must consider future obligations and applicable rules, receive an explicit decision, and appear in the revised forecast. A positive balance is not evidence that its protective purpose has ended.
Simply increasing the budget also hides useful information if the cause is omitted. Freight made more expensive by late procurement teaches a different lesson from freight required by a customer change. Classify the event, preserve the original estimate, and record the revision. This supports reimbursement discussions where appropriate, improves future contracting, and helps assess whether coordination or supplier performance contributed to the loss.
When an error emerges, first contain avoidable commitments where doing so will not cause greater damage. Then recalculate cost to complete, the minimum cash balance, and probable collection. Do not present an old margin while managing a higher internal cost estimate. Consistency between operations, management, and any funder reduces decisions based on incompatible figures and allows alternatives to be discussed before a commitment is missed.
Present the project to potential funders with clear evidence and limits
If execution requires outside resources, start with the contract and cash curve. Explain scope, package budgets, critical suppliers, acceptance events, maximum funding needs, and adverse scenarios. Distinguish contracted figures, estimates under negotiation, and conditional revenue. A quotation differs from an accepted order; expected sales differ from existing receivables. These distinctions help potential funders understand uncertainty instead of treating every figure as equally established.
KEZS connects entrepreneurial projects and potential funders through technology and intermediation. Project documentation can help explain the intended use of funds and factors affecting collection. Investors conduct their own diligence and make their own decisions; KEZS does not assign a credit score. Organized information is not approval, a repayment guarantee, or evidence of an operational capability that has not been demonstrated.
The structure must match the rights negotiated. Loans, receivables, equity, convertibles, and donations carry different rights and risks. A Brazilian MEI cannot admit equity partners while remaining a MEI. A donation to a nonprofit is neither equity ownership nor a promised financial return. For a temporary execution gap, examine whether a structure's duration and costs are proportionate to the need. No structure guarantees profit, liquidity, or preservation of capital.
Public securities distribution and regulated financial activities require appropriate structures and providers in Brazil; technology or a CNAE business classification is not authorization. Examine costs, security, conflicts, release conditions, and possible loss. Digital records or tokens do not establish reserve solvency, legal title, or liquidity. Share private documents through suitable restricted channels. Reference sources are starting points for inquiry, not proof that KEZS holds any particular authorization.
Close with verified collection and lessons for the next project
Practical preparation starts before purchasing: confirm billing and collection conditions, divide the scope, obtain comparable offers, and schedule every commitment. Calculate the maximum need and test plausible delays. Then align customer advances, supplier terms, genuinely available company funds, and any external arrangement. This sequence helps avoid choosing financing before understanding the gap it must cover and the obligations it would add.
During execution, release payments against verified conditions and maintain the cost-to-complete forecast. At delivery, check evidence, receipt acknowledgments, reservations, and acceptance responsibilities. Completing the example's physical delivery on day 40 does not establish the financial outcome. The plan also depends on acceptance on day 45 and collection of R$90,000 on day 75. Each event requires its own confirmation rather than being inferred from the preceding one.
After collection, reconcile the amount, identify deductions, and settle obligations under the applicable agreements. Check remaining corrections, contractual warranties, and closing costs. A positive bank balance does not end every responsibility. In the financed base case, R$27,000 is the arithmetic result after R$90,000 of operating costs and R$3,000 of financing costs, dependent on the stated assumptions and absence of omitted expenses.
Finally, compare forecast with execution: which purchases used cash too early, which documents delayed acceptance, which suppliers performed, and which deviations were preventable? Update order templates, progress-measurement criteria, and budget assumptions. The lasting benefit is a clearer basis for the next contract: understanding how the business moves from taking on an obligation to delivering an acceptable result and collecting the corresponding payment.
Frequently asked questions.
How does total project cost differ from its cash requirement?
Total cost is the expenditure attributed to execution. The cash requirement is the greatest amount needed to cover the timing difference between receipts and payments. Here, operating costs total R$90,000, but the R$30,000 customer advance reduces the maximum base-case requirement to R$60,000. Adding the hypothetical R$9,000 reserve brings planned coverage to R$69,000. The reserve becomes a cost only when actually spent. The cost total explains expected margin; the payment schedule explains when funding is needed.
Should I take an immediate-payment discount or negotiate longer terms?
Compare the effect on the whole project. Weigh the discount against funding costs and the headroom immediate payment consumes, alongside delivery, quality, and replacement options. A purchase-level saving can still strain consolidated cash. In the alternative example, paying R$26,000 on day 80 instead of R$24,000 on day 25 reduces the requirement before customer collection but adds R$2,000 to operating costs. Recalculate financing for the revised curve rather than carrying forward the original financing cost.
How can I determine a reasonable subcontractor advance?
Connect it to identifiable mobilization expenses, execution timing, and the exposure your business can support. Ask how the money will be used, define evidence, and link later installments to verifiable progress. Consider what happens if work never starts or the subcontractor needs replacing. This method provides no universally safe percentage. Too little may prevent mobilization; too much may leave insufficient funds or practical options to respond to failure. The advance should support a workable delivery plan.
Can I fund execution using a sale I still hope to make?
An expected sale can appear in a commercial scenario, but it must not be labeled an existing receivable. Distinguish negotiation, an order, a contracted obligation, and a right eligible for the particular transaction. Even a signed contract can contain execution and acceptance conditions affecting collection. If funding depends on uncertain revenue, disclose that dependency and test the possibility that it never materializes. Otherwise, the forecast understates the real requirement and weakens diligence by treating a possibility as available coverage.
What should I do if the customer is late but the supplier needs payment?
Update the forecast immediately. Confirm the cause, outstanding issues, and revised expectation with an authorized customer representative. Review the contracts before changing supplier payments, and negotiate documented alternatives that preserve viable execution. If financing falls due soon, communicate early enough to assess permitted solutions. An informal promise is not available cash, and silently delaying another obligation can increase costs and conflict. In the example, delayed customer payment leaves a financing shortfall despite the unused operating reserve.
Which documents make a project assessment more reliable?
Use a coherent set: customer contract or order, scope and exclusions, budget, supplier quotations and orders, execution schedule, cash curve, and acceptance criteria. Add progress measurements, delivery records, tests, authorized changes, and collection status during execution. Documents should agree and identify versions, responsibilities, and uncertainties. More files do not compensate for conflicting information. Protect personal and commercial data, limiting access to the assessment's purpose. Evidence should clarify commitments and dependencies rather than imply certainty that the underlying facts do not support.
When can the project's result be treated as available?
After collection is evidenced, amounts are reconciled, and outstanding commitments are recognized under the company's applicable rules. Projected margin is not immediately available money. The initial R$30,000 supports execution, while the R$9,000 reserve preserves a response to deviations. The financed scenario's final R$27,000 assumes full customer payment, settlement of R$72,000, and no additional costs. Remaining corrections, warranties, closing expenses, or other obligations must still be considered before treating that balance as available for another purpose.
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 ↗
- CVM — Resolução 88, texto e alterações ↗
- CVM — Resolução 175, fundos de investimento ↗
- Portal do Empreendedor — perguntas sobre MEI ↗
- ANPD — orientações e perguntas frequentes ↗
AI-assisted educational content. Decisions require verification of the information, instruments and providers in each actual case.
