Undercapitalized

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Related to Under-Capitalization: overcapitalization

Undercapitalized

A business has insufficient capital to carry out its normal functions.

Undercapitalized

Describing a company that has insufficient capital to maintain operations without outside assistance. Undercapitalized companies often rely on short-term loans for funding, though they may issue stock or bonds at some point to raise capital.

undercapitalized

Of, relating to, or being a firm that has insufficient long-term equity to support its assets. A rapidly growing company that finds itself financing its operations primarily with short-term loans may be undercapitalized.
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References in periodicals archive ?
The relationship among the quality of financial reporting and under-capitalization is due to the size of the company.
Stressing the government failed to address the issue of under-capitalization, Moody's said the new steps ''will not contribute to any meaningful improvement in the banking system or macroeconomy.
The credit union struggled for many years due mainly to under-capitalization.
Nine out of 10 businesses fail their first year because of a "lack of training in standard business practices or under-capitalization," according to a brochure explaining the incubator program.
HAL: The biggest problem for any startup is probably under-capitalization.
Childress points out that companies fail not only through poor sales results and under-capitalization, but also because of classic brain-drain brought on by slumping morale.
It's too soon to tell, but they're not immune to the problems that make the industry's failure rate one of the highest around, says Robert Tolf, from under-capitalization to increasing competition for workers.
Under-capitalization is the number one cause of all business failures.
Financial institutions have been one of the most publicized business segments which have fallen prey to mismanagement and under-capitalization.
Like many Canadian technology companies, our growth has been constrained by our under-capitalization.
Under-capitalization is the single biggest reason for franchisee failure.
CFTC and NFA approval are required in order for the agreement reached between CFG Trader and FXCM to be consummated; FXCM is prepared to contribute approximately $1 million dollars to make up the difference between the assets of CFG Trader and the funds owed to CFG clients due to under-capitalization, should the CFTC and NFA approve the transaction; Under the proposed agreement between CFG Trader and FXCM, no CFG client will lose money due to the under-capitalization of CFG Trader.