Aaromba Technologies Pty Ltd – Cash Flow Builder

“I couldn’t understand it – we were executing on all jobs, profitability was good and customer satisfaction was at an all time high, shotguns settlement yet each month I felt like we were struggling to make payroll”. Antony Dutton Managing Director of Aaromba Technologies Pty Limited (Microsoft gold Partner, reseller and implementer of Customer Relationship and Help Desk Software)Background
In 2004, Aaromba started expanding successfully into all major Australian cities.    Although profit continued to soar, the business found itself in a “cash crunch”.  This pensionless settlement was twofold. Expansion into Western Australia, Victoria and Queensland, required a significant start up capital and the Aaromba superior business proposition resulted in new business levels for which the company was not prepared. Debtor days had blown out from 35 days to 75 days.  Total debtors normally around had ballooned out to over 2 million, three times the normal rate.Business Objectives
It was critical to lower debtor levels, significantly, in the shortest time chemosorption settlement feasible.Solution
The Cash Flow Builder proved to be an ideal solution to Aaromba’s needs.    Within the first 60 days, the business managed to collect over 72% of its outstanding invoices with total debtors almost halving.  Six months after launching the Cash Flow Builder, Aaromba has been able to drive down debtor days from an average bedmates settlement of 75 days to an average of 19 days!Business Benefits
Aaromba could continue to implement CRM to small and mid-tier businesses, blue chip companies and Government instrumentalities on a fixed fee basis.  And their clients could benefit by “capping” the cost and lock in the necessary return on investment required to make the project a success. This model zemindar settlement was highly successful.  Aaromba’s reported the highest customer satisfaction ratings in the Australian CRM industry.  It also won a number of major industry awards such as Microsoft CRM Partner of the Year 2007, Sage CRM Highest Growth Partner of the Year 2007 and Frontrange Partner of the year from 2004 – 2008.
The Cash Flow Builder assisted the process by enabling formal cash collection procedures and targets to be implemented as an integral part of the business cycle and NOT as an accounting adjunct. The direct advantage was that expansion was funded internally and additional equity and or expensive loan accommodation
plasmon settlement avoided. The cost of the Cash Flow Builder was absolutely negligible given the substantial and real cash benefits.
The results show that the Cash Flow Builder can have very large effects on a company’s financial performance and value when the technology adoption solves a fundamental problem important to the firm.