Redditch United say sponsors Kool Sport have pulled out of their deal with the club without paying any of the £40,000 agreed for a two-year deal.
Reds associate director Tim Delaney told BBC Hereford & Worcester the news was a bitter disappointment.
"We did suspect that this may well be the case as nothing has been forthcoming for so long," he said.
"But for them to actually say officially that it is finished then, yes, it is a huge blow," he added.
Redditch officials negotiated the two-year deal with the Thailand-based sportswear company prior to the current season.
The Valley Stadium club was due to receive £40,000 over the two years, with club officials saying they understood that the first year's money would be paid in instalments throughout the season.
Tim Delaney says, while the loss of this season's £20,000 would be a major setback for any Blue Square North club, the board is already working on a replacement deal for next season.
"We have already had telephone conversations this week to try and get our heads around what we can actually do," he said.
We will do everything in our power and I guarantee this football club will be there at the kick off in Blue Square North for next season.
Tim Delaney
"I know from speaking to other board members this week that there are already plans in place to look at moving forward for next season," he added.
The Reds have well-documented financial problems but, despite these, the team's form on the field has picked up in recent weeks, and they are now seven points clear of the relegation places.
Mr Delaney says board members have put in considerable amounts of their own money to keep the club afloat and, given the levels of criticism they have faced, he insists they are not going to throw in the towel now.
"None of us are going to put up with that and then suddenly say: 'Ok, we've had it'," he said.
"We will do everything in our power and I guarantee this football club will be there at the kick off in Blue Square North for next season.
"Mathematically we have still got a little bit of work to do on the pitch, but the way that Gary [Whild] and Carl [Heggs] have got the team playing, a couple more wins and we should be absolutely certain of that."
BBC Hereford & Worcester has been in email contact with Kool Sport and hope to have reaction from the company next week.
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