How Brazilian companies can turn existing revenue into cash by 2027

More than 9 million Brazilian companies were in arrears in May 2026, with £34.1 billion in defaulted debt, according to Serasa Experian. With expensive credit, pressure on cash flow and a new phase of the Tax Reform due in 2027, the second half of the year raises a practical question for businesses: before pursuing more customers or increasing investment, they need to establish how much of the opportunities already reaching the company actually becomes revenue and cash.

The review should cover areas such as pricing, margin, sales conversion, team productivity, costs and customer recurrence. For Ravell Nava, entrepreneur and founder of Brl Educação, a company focused on business training, one of the main challenges is identifying exactly which of these areas is restricting the growth of each business.

“Higher revenue does not always mean selling to more people. Some companies already have demand, but lose opportunities during the sales process. Others sell well but operate with a margin that cannot sustain growth. Before expanding the structure, it is necessary to find the bottleneck,” he says.

Reviewing the revenue already within reach

One of the first recommended steps is to monitor the entire journey from an opportunity arriving to a sale being completed. The number of contacts, proposals submitted, conversion rate, average transaction value and repeat purchases can reveal where potential revenue is failing to reach the cash account.

This assessment is part of the method Ravell Nava applies with entrepreneurs supported by Brl Educação. The approach combines sales and management indicators to pinpoint operational issues that can be addressed before expanding the team or raising investment.

“This work has helped entrepreneurs see growth opportunities that were previously unclear within their own operations. In many cases, by identifying where the company loses sales, margin or efficiency, we can allocate resources more effectively and turn management and sales-process adjustments into higher revenue. This method has supported the routine of several entrepreneurs and the performance of their companies, including amid challenges such as expensive credit, pressure on cash flow and tax changes,” he explains.

The same principle applies to team productivity. Tracking how many contacts become proposals and how many proposals lead to completed sales makes it possible to spot performance differences, improve inefficient stages and set targets that are closer to the operation’s actual capacity.

Revenue must reach the cash account

Another key point is to distinguish revenue growth from financial results. A company may sell more and still encounter difficulties if costs, discounts or unsuitable prices erode its margin. “Revenue alone does not solve a company’s problems. It is possible to achieve record sales and still have no money. The entrepreneur needs to know how much remains from each sale and how much it costs to generate that revenue. When these figures are monitored, it becomes easier to decide where to grow and where to make corrections,” Ravell Nava notes.

For this reason, price and margin should form part of the 2027 review. Direct and indirect costs, discounts granted, profitability by product or service, and sales expenses help show whether projected growth will also generate sufficient resources to maintain operations and fund new investment.

The existing customer base offers another opportunity. Repeat purchasing, recurring revenue, a higher average transaction value and new offers for customers already served can provide additional revenue streams without making all expansion dependent on winning new audiences.

“When we assess a company, the question should not only be how to sell more, but where there is revenue that is not yet being captured. Sometimes the opportunity lies in conversion. In other cases, it is in price, margin, productivity or the relationship with existing customers,” Ravell Nava points out.

Tax Reform becomes part of 2027 planning

Planning gains an additional variable through the tax timetable. According to the Federal Revenue Service, 2026 serves as a testing period for CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services). From 2027, PIS (Social Integration Programme) and Cofins (Contribution for Social Security Financing) will be abolished, CBS will begin to be effectively collected and the Selective Tax will come into force.

Split payment, the mechanism set out in the Tax Reform to separate the tax amount during the financial settlement of transactions, also makes cash flow one of the areas companies need to monitor.

“2027 cannot begin in January. This second half of the year must be used to review price, margin, sales structure, costs and tax planning. If the entrepreneur knows where the business makes money and where it loses it, they can set more realistic targets and make decisions more accurately,” Ravell Nava assesses.

For business owners, planning for the coming year should be based less on an isolated sales target and more on the ability to turn revenue into results.

“The method has shown precisely this to the entrepreneurs we support: growth does not simply mean putting more money or effort into the operation. When we identify where the company is leaving money on the table and can act on that point, growth becomes more structured. This perspective can help companies navigate current challenges and enter 2027 better prepared to grow,” he concludes.

By Carolina Lara