Undercapitalized

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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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