Ville,
Local banks.
Don't forget, many of the members are probably existing customers and in some cases the bank's officers are members.
In addition, the bank feels it may obtain additional customers from the membership
As I was shopping for my wife on Saturday I ran into an old friend who serves on the board of a nearby club.
This club had entered the death spiral stage with $ 5,000,000 of debt.
With membership down below 200 members, that's $ 25,000 per ,member @ 200.
Debt service would be between $ 200,000 and $ 300,000 at 4 % to 6 % interest.
If membership goes to 150, debt per member climbs to $ 33,333 and servicing the 200K to 300K goes to $ 1,333 to $ 2,000 per year.
Now, here's the kicker. They just discovered that they own 9 acres of non-golf related land, zoned for development.
Interested parties are offering in the neighborhood of $ 5,000,000, which would wipe out their debt and reduce their dues by $, 1,000 per member just in interest payments. It would further reduce dues, vis a vis principal re-payment and eliminate all debt, making the club far, far more attractive, financially, to current members (retention) and future members.
I told him that if anyone wants to divert any portion of the potential purchase price for other projects, they should be shot or thrown off the board, whichever is easier.
This will be an interesting case study as the course has previously sold off parcels of adjacent land.
And, in spite of that, still incurred $ 5,000,000 in current debt.
And these are supposed to be smart businessmen.
Never forget the advice I was given at age 22 by a wise older member.