KGB Packaging says it’s actively seeking satellite packagers to package cases on its behalf.
Rachel Bancroft, managing director of KGB Packaging, says: The big challenge for small packagers is to grow large enough to be able to carry some weight with lenders.
Lenders are already starting to restrict their panels to a limited number of larger packagers, and this trend will continue.
Lenders want bulk distribution and larger packagers are better at delivering this than small ones.
One way that smaller packagers can start to grow is by undertaking satellite packaging, where they package cases on behalf of a larger packager that has access to good products and on-site underwriters, which enables them to earn additional fees.
One advantage of such an arrangement will be that KGBs satellite packagers will then have access to Unity mortgage products that are only available via PMPA packager members, plus all other competitive PMPA products.”