MONEY MORAL DILEMMA. Should Margaret let Nick remortgage to back her new business?

Here's this week's hypothetical situation for you to cogitate on:

Margaret is a 25-year-old entrepreneur who desperately wants to set up her own nightclub business. Yet she can’t find the £60,000 backing needed to set up the company. Her Dad, Nick, offers to remortgage so he can invest in the firm. While Margaret’s confident the nightclub will take off, Nick’s home will be in peril if it fails. Should she let him remortgage?
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Comments

  • ThinkingOfLinking
    ThinkingOfLinking Posts: 11,828
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    I'd say Nick should look over Margaret's business plan, preferably with someone knowledgeable; why has nobody else backed it. Yes, she's his daughter but not only is it his home but also eventually her inheritance he'd be putting at stake. Could Margaret not get a loan?
  • scotsbob
    scotsbob Posts: 4,632 Forumite
    NO.
    Never, ever, not ever, give a woman that much money.



    .
  • CandyBar_2
    CandyBar_2 Posts: 51 Forumite
    No, not unless Nick has other investments to fall back on if Margaret doesn't come through.

    A tad inspired by "The Apprentice" eh? ;) ("Nick" and "Margaret" being Sir Alan's two advisors, and Yasmina, this year's winner, having launched her restaurant with money from her Mum who remortgaged the family home)
  • Taffybiker
    Taffybiker Posts: 927 Forumite
    Not a chance! If the night club had a good chance of survival there would be a queue of lenders throwing the money at Margaret. The fact she can't find financial backing elsewhere serves as a warning against the project.
    Try saying "I have under-a-pound in my wallet" and listen to people react!
  • Night clubs are prbably the worst new business venture to invest in and to remortgage to fund it is absolute madness.
    the window of opportunity for a nightclub to get revenue is between 12am and 4 am friday and sat night or 8 hours to be exact , to say they are up against it is an understatement.
    the running costs are astronomical and (rent entertainment and security) all at a premium and the liklyhood of success is very low.
    25 year old nightclub boss .....get real and Dad don't be a mug
  • Tali_2
    Tali_2 Posts: 16 Forumite
    Of course not.
  • linda1955
    linda1955 Posts: 18 Forumite
    No, children should not take advantage of their parents' natural desire to help them out. If Margaret can't get the money elsewhere, it's probably not a good business venture.
  • steam_dan
    steam_dan Posts: 97 Forumite
    If Margaret has doubts about the business succeeding then she should not be doing it. You should only go into a business with the attitude that it WILL succeed and be prepared to do anything it takes to make it happen. Therefore she should not accept her father's generous offer.
  • Cloudane
    Cloudane Posts: 524
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    scotsbob wrote: »
    NO.
    Never, ever, not ever, give a woman that much money.

    :rotfl:

    No, even though he's obviously willing as a parent, she shouldn't allow him to put himself in that position where he could potentially lose his house. If you want to stand on your own feet and be all independent etc, do so properly. Otherwise - join the employees club with the rest of us chickens.
  • Hang on here - I take issue with the 'let him' - she is 25, still wet behind the ears while he is a fully grown adult with life experience.
    He will know her better than any bank manager and if in his judgement it is a good enough gamble to bet his house on then I would accept that. I think it would be insulting to him to 'not let him'
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