Undercapitalized

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Related to undercapitalization: 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 ?
213) By thorough governmental enforcement of the discussed requirements perhaps the current problems among insurers of undercapitalization and bankruptcy can be curbed eventually.
Does political power, as measured by state representation on the House and Senate banking committees, influence the length of time between initial undercapitalization and ultimate bank failure?
As stated above, this arrangement adds complexities and is subject to risks associated with undercapitalization of the general partner.
Treasury can - and should - take immediate corrective action to cure the undercapitalization of the GSEs.
The lackluster economy in Lane County is the result of undercapitalization, and without capital and leadership, our current underperforming economic dynamic will continue.
In its early days, Thanks Again struggled with undercapitalization because some airlines required that it prepay for miles.
Central bank chief Sanusi Lamido Sanusi also guaranteed creditors and depositors, but fired top executives at five of the country's 24 banks because of poor decisions that had led one of the five into 'technical insolvency' and to undercapitalization in the other four.
ECB's Wellink expressed concerns over the undercapitalization of banks and suggested that reserves need to be built up in good times so that banks can better deal with times of financial stress.
New initiatives are necessary, and they need to avoid the failings of earlier programs, including factors such as the absence of local support, narrow focus, undercapitalization, and failure to consider the complex and unique market forces of the Delta as described by Gnushke and coworkers.
courts, including commingling of assets, failure to follow formalities, undercapitalization of assets, and the extent to which one company dominates another.
Undercapitalization of small business has hampered the nation's ability to supply its own intermediate and capital goods.