The Brisbane company today announced plans to accelerate its export growth with the backing of the Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, and Westpac.

The combined support has provided Frosty Boy Australia with additional working capital to fund export initiatives in China, Canada and South Korea. The company already exports to more than 30 countries including the Philippines, Saudi Arabia, Indonesia and Vietnam.

Frosty Boy Australia’s development over the past 30 years is both a Queensland and Australian business success story - its bold slogan and symbol, a small boy carrying a soon to be consumed soft serve ice cream cone, remain iconic images.

“Our company is now more than 30 years old and anyone who grew up in Brisbane would probably have had ice creams from the fleet of Frosty Boy vans that were running all over the place in those early days,” said André Van Rooyen, one of the company’s four business partners.

The company has developed from its humble suburban origins into a sophisticated enterprise supplying soft serve concentrate, flavourings and toppings via a distribution network throughout Australia and overseas.

Some of the most prominent international fast food chains are among Frosty Boy Australia’s local and international customers.

The company’s export success over the past five years follows a strategy of building excess operating capacity at its manufacturing plant at Loganholme south of Brisbane to support its ambitious export program.

“We have a tremendous opportunity to export worldwide but it’s important to manage growth with smart financing,” Mr Van Rooyen said. “That’s where an innovative financial product like EFIC Headway can help. It was easy to access through our existing banking relationship with Westpac.  With the extra working capital, we can effectively enter new markets like China and South Korea.”

“We were fortunate in appointing a successful distributor in China at the first attempt and we plan to build on that relationship. China is a dynamic market where exponential generational change is taking place in consumer choices and tastes. The new generation is no longer isolated - they have access to the Internet and a growing taste for Western music and food,” he said.

Mr Van Rooyen said the company’s attention to quality and operating capacity to ensure timely supply of product to international clients are important elements of their export success.

“Our view is that quality always finds a market,” Mr Van Rooyen said. “Our export customers are very discerning with standards that are extraordinarily high. If you don’t have top notch facilities, you are not going to make it.”

In order to facilitate further export success, the company could double its output in its current factory on the Loganholme site. Mr Van Rooyen said EFIC’s financial guarantee would enable the company to accelerate their export growth for which Frosty Boy is most grateful.

EFIC Headway assists small to medium sized enterprises (SMEs) to bridge the finance gap by providing access to additional working capital from their bank.

EFIC provides guarantees to enable banks to lend additional funds to eligible exporters without the need for added security.  EFIC Headway is a guarantee from EFIC to a bank, enabling participating banks to lend eligible businesses additional funds without obtaining additional security.

Participating banks include Westpac, HSBC, CBA, NAB, ANZ and BankWest.

“Frosty Boy Australia is really a great example of a profitable fast growing SME whose success has outstripped the value of assets that can be used to secure additional working capital,” said Sunil Aranha, head of SME business development at EFIC.

“Our research shows SMEs frequently miss out on export opportunities due to working capital constraints, and that 43 per cent of SMEs would borrow more if finance was available. EFIC Headway is there to help exporters reach their full growth potential.”

About EFIC
EFIC is the Australian Government’s export credit agency and supports Australian businesses internationally by providing finance, finance guarantees, insurance and bonding facilities.  EFIC is a self-funding, statutory corporation and operates beyond the limits of the commercial market, providing support when financial, country or industry risks exceed the capacity available in financial markets.