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Customer Financing

Some small businesses, squeezed hard by the credit crunch and unable to obtain bank loans, have found unique sources of funding. The New York Post reports that the popular Five Points Fitness gym in SoHo finally gave up on a bank loan it was in the process of obtaining in order to expand. Instead, the gym’s owner Kevin McGrath, turned to a number of its clients who loaned him the $175,000 needed to move into a bigger facility.

Even with all the best numbers and the best month in our history, [the loan] couldn’t really happen in the traditional way, said McGrath.

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