Fast Five Friday: Ford's Insane All-or-Nothing Raise

Hey

Welcome to Bankrolling Tomorrow, your no BS guide to capital raise stories.

This week I unpacked a capital raise that contains everything you could possibly ask for. It has something for everyone - finance nerds, engineering geeks, car enthusiasts, history buffs, risk junkies, the whole lot.

It's from a crazy crazy time, when Ford did something absolutely insane: put their ENTIRE company up as collateral for $23.4 billion. And I mean everything - every factory, every patent, every piece of technology, and yes, even that iconic blue oval logo that's plastered on half the cars clogging up your morning commute. (You know, the international symbol for "reliable but about as exciting as watching paint dry on a rainy Tuesday." No hate, Ford - someone has to make cars for people who think heated seats are dangerously adventurous.)

The stakes? If they couldn't pay it back, lenders wouldn't just take a chunk of Ford. They'd take ALL of Ford. The entire 103-year legacy - poof, gone, finito.

But… It worked like a charm. When 2008 rolled around and the financial world imploded, GM and Chrysler went crawling to the government with their hands out, while Ford sat pretty with cash, complete control, and zero bureaucrats telling them how to run their show.

You can read the full saga in Tuesday's newsletter, but here are 5 things you can steal from Ford's completely mental all-or-nothing raise and apply to your business:

1/ Raise early, not emotionally: Stop waiting for the "perfect moment" or until you're desperate. Ford raised in 2006 when they still had negotiating power. By 2008, their competitors were accepting whatever scraps the government offered.

2/ Use your assets (ALL of them): Ford didn't just pledge machinery and inventory. They used contracts, recurring revenue, IP, workforce stability, distribution networks, even brand value. Your assets go way further than you think (if you actually take the time to inventory them properly).

3/ Build a funding stack: Ford mixed $7B in term loans, $11.5B revolving credit, and $5B convertibles. Different lenders, different risk appetites, maximum flexibility. Thinking one facility will solve everything is pure magical thinking.

4/ Debt protects control better than equity: Equity feels friendly until you realise it's the most expensive capital you'll ever take. Ford avoided dilution entirely and kept their name on the building. Meanwhile, equity investors love showing up with "helpful suggestions" about how to run your business.

5/ Don't wait till the last minute: Ford's raise looked extreme because they did it early, while they still had options. Most businesses wait too long, then panic when every choice feels terrible. Fix your funding while you can still dictate terms, not beg for them.

Ford's move looked absolutely mental from the outside, who puts their entire century-old company on the line like that?

But in my opinion doing nothing would've been way riskier. Sometimes the biggest gamble isn't taking the bold action, it's sitting around hoping things magically get better.

Ford chose to control their own destiny instead of letting circumstances control them. And honestly? That's the most important lesson of all.

Thanks for allowing me into your inbox every week.

I’ve been having some amazing conversations around capital raises, If this is something you’re looking into, or is your area of interest, my inbox is always open. 

PS: If your business needs funding or funding advice, explore the options at my company FundOnion here. We’re amazing!

Talk soon,

James