Undercapitalized

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Undercapitalized

A business has insufficient capital to carry out its normal functions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Given the complexity of existing regulatory capital rules and other supervisory processes already in place, multiple PCA classifications (well-capitalized, under-capitalized, etc.) are probably unjustified.
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