Melbourne-based Jason HTG (Australia) Pty Ltd is riding on the sheep's back - all the way to the USA.

Jason HTG is a manufacturer of woollen under-blankets and quilts, as well as wool and wool/polyester fabrics used in a variety of other products.

Rescued from receivership in 1996, the company is now thriving, sustaining double-digit annual growth and developing export markets in Asia and the USA where the Jason under-blankets and quilts are now sold through numerous retail chains and mail order companies.

Woollen under-blankets are a new product for the USA market, so how did a small Australian company convince American retailers to take a risk on importing a product they had never sold before?

Firstly, logistical problems of stock supply were solved by establishing warehousing facilities in the US, explains Jason HTG chief executive, Matt Port.

"And on the financial side, we've made it easier for retailers to do business with us by using an export financing facility provided by Scottish Pacific Business Finance," said Matt.

"If we had asked them to pay in advance or provide letters of credit, they would not have been as interested in doing business, but because we use factoring, they can buy on open account.

"One thing we've noticed about the USA market is that factoring is more widely used than it is in Australia. When you deal with a new retailer in the US, they automatically ask which factoring company you use.

"It works well for both parties, because the day after we ship an order from our US warehouse, the money is in our account in Melbourne," said Matt.

On the home front in Australia, Jason HTG has used domestic factoring through Scottish Pacific Business Finance to fund its revitalisation and sustain its rapid growth.

"If we had gone to one of the mainstream banks, we probably would have ended up on an overdraft with a fixed limit," said Matt. "But we would have  reached that limit very quickly and have had to go back to the bank to justify an increase in the limit.

"The beauty of our working capital facility with Scottish Pacific Business Finance is that it increases automatically, in line with our growth and we don't have to go back to justify an increase in the facility which is a very time-consuming process.

"This way, the financing takes care of itself so the management of our company can focus on marketing and manufacturing and product development; in other words, the issues that have a direct bearing on success," said Matt.