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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References in periodicals archive ?
Private-sector banks account for only 5 percent of Iran's banking system, but they are already challenging the 11 under-capitalized state-run banks.
If a company is under-capitalized, a buyer typically will reduce value by more than the theoretical under-investment.
A private operation, the Borneo Sugar Company, was already established somewhere in the Kuching area but was under-capitalized and doomed to failure, according to Sewell, who advised the Sarawak government against rescuing it.
At times we've felt like the typical under-capitalized start-up, but now we've seen 50 percent sales growth in 2004, and there are several exciting projects in development," says Kokoszka.
Most companies start out under-capitalized because it's difficult to attract stakeholders to small start-ups.
Under-capitalized 1 0 5 0 0 1 Savings Association Insurance Fund Assessment Base Distribution (b) Assessable deposits as of December 31, 2002 Supervisory risk subgroup Assessable Number of deposit base Capital group institutions (millions of dollars) A B C A B C 1.
Like southern textile and lumber firms, coal companies were typically family-owned and under-capitalized.
Certainly, these are difficult times for the under-capitalized participant.
New companies, small companies and under-capitalized companies that possess considerable managerial and artistic virtue may find it more challenging to establish themselves.
They will be the equivalent of what in the for-profit sector are "limping along," under-capitalized corporations.
Last year's recession has left many banks under-capitalized and vulnerable to takeovers.