Players and coaches have agreed to take a pay cut
Nottingham Rugby Club officials say it could close by Christmas unless an immediate cash injection is found.
The promotion-chasing National One side are facing major cash-flow problems after a £300,000 land deal collapsed.
Chairman Geoff Huckstep said he came close to closing the club last week -staff and players were asked to take a significant pay cut on Tuesday.
He said: "It is not a step we have taken lightly but we have no choice if we are to keep them employed."
Huckstep said the club would need a minimum of £150,000 to help combat financial problems which were directly linked to the credit crunch.
"We had agreed a £300,000 land deal with a property developer but the impact of the banking crisis meant the deal did not go ahead and has left us with a hole in our income streams," he said.
We desperately need help from the people of Nottingham
He said an extra £300,000 was expected to be made through shares but this has also fallen short because of the economic climate.
Attendances have risen since the Green and Whites moved to Meadow Lane but have not been as high as expected.
Proposed changes in the league structure may give Nottingham a boost in funding next season but the club say they need a boost now to see them through to May.
Huckstep added: "Unless something happens immediately to change our cash-flow situation, there is a very real risk that we will be gone by Christmas.
"We desperately need help from the people of Nottingham, and the business community, or this city will lose one of its greatest sporting assets."
The club notched up their ninth league win in a row on Saturday and are currently third in the National One table.
Anyone interested in offering financial support can go to the Nottingham Rugby website or call 0115 907 0070.