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.
Others succumb to competition, under-capitalization or the multitude of regulations assigned to restaurants.
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.
Foremost among these issues are artist and staff under-compensation, organizational under-capitalization and social resistance to controversial work, all of which have been discussed in American Theatre editorials over the last year.
Under-capitalization is the number one cause of all business failures.
In this scenario, the less-developed regions, which could not in their poverty and under-capitalization measurably aid in the goal of forging a stronger Yugoslavia, would have to sublimate their aspirations until the external threat to Yugoslavia disappeared.
Financial institutions have been one of the most publicized business segments which have fallen prey to mismanagement and under-capitalization.