I have two clients, Co A & Co B.
Co A factors their debts currently (with unconnected customer balances), however they provide Co B with goods and services but the factoring/ID co is refusing to finance these debts due to the relationship between the two companies as per the below.
The Directors of Co A are also Directors of Co B. B has one other Director (who isnt connected to A and owns 50% of share capital). The A Directors own the other 50% of B.
I assume the factoring company are concerned around the relationship between the two co's, and on the basis that it isnt an ordinary customer/supplier relationship they will not finance the debtors.
Are there any options here to assist Co A? The A directors are happy to resign from Co B but will still collectively hold 50% of the share capital of A