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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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Present owner started business and was undercapitalized from the outset.
Despite the efforts that have been made, African agriculture still faces many constraints, being undercapitalized, inefficient and uncompetitive, FAO`s Director-General said.
In addition, many of the private banks in the country are undercapitalized.
 
 
 
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