An internet provider in São Paulo was growing in customers and revenue, but didn't see the money reach its cash. The explanation was interest. The company had built up R$ 150 thousand in debt: R$ 80 thousand on overdraft, at 12% a month, and R$ 70 thousand in receivables advances, costing between 3% and 5% a month.
It was what you might call false profit: the operation generated results, but the cost of money ate it all.
The challenge
Reliance on expensive short-term capital created a domino effect. Financial costs, often between 4% and 8% a month, eroded the margin. The financial cycle was disorganized: the company received in installments and paid dearly to get money early. Without healthy capital, it couldn't invest in network expansion, new customers or infrastructure, and it was losing market share to better-capitalized competitors. Management lived in "emergency mode," with reactive decisions and the manager's time consumed by financial fires.
The trigger was hitting the limit. The overdraft was maxed out, banks began restricting new credit and advances no longer covered the cash hole. There was a risk of delaying payroll and critical suppliers, which would directly affect the service. The leadership realized it was trapped in a cycle: use expensive capital, lose margin, run out of cash, use more expensive capital.
How Vispe worked
The diagnosis changed how the problem was seen. It wasn't just a lack of cash: it was a capital structure that was wrong for the business model. The work separated bad debt, short-term and expensive, from strategic debt, long-term and cheap.
From there, the overdraft and receivables advances were replaced with cheaper, longer-term third-party capital. Cash flow was reorganized to balance inflows and outflows and end the reliance on emergency credit. The freed-up cash was directed to network expansion and customer acquisition.
There were obstacles. The financial data was disorganized, with no clarity on the real debt or the effective cost of each operation. The company's culture was used to the "fast money" of advances. And negotiating with financial institutions required a solid story and solid numbers, since a history of expensive credit weighed against it. The company was positioned to "look financeable," with numbers and a presentation that improved its risk perception. All of this was done with the operation running, making sure commitments were met during the transition.
Knowing the sector made a difference: providers have recurring, predictable revenue, which makes it safe to extend debt.
The results
- Amount raised: R$ 1.5 million.
- Cost of debt: down about 65%, from 4.5% to 7% a month to 1.5% to 2% a month.
- Savings: R$ 35 thousand to R$ 50 thousand a month in financial expenses, or R$ 420 thousand to R$ 600 thousand over 12 months.
- Term: from 30 to 60 days to 24 to 36 months, with a 60- to 90-day grace period on part of the operations.
- Capital freed up: about R$ 40 thousand a month for growth.
- Emergency credit: about 80% less reliance.
- Net margin: an estimated gain of 8 to 12 percentage points.
What changed
The company now knows exactly how much it owes, what its debt costs and how much cash it generates. It moved from guesswork to management based on numbers, and the partners gained peace of mind and control. With an organized financial structure, the company also improved its standing with banks, suppliers and partners.
The big shift was in mindset: credit stopped being a lifeline and became a strategic tool. The company stopped being hostage to the financial system and began using it as a lever for growth.