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 ?
The Nigerian central bank has said that no bank in the nation is undercapitalised.
Speaking to the Parliament's Agriculture Committee on Tuesday, Agribank's CEO, Sam Malaba, said : 'The bank is undercapitalised and does require urgent recapitalisation.
President of Domaine Boyer Margarit Todorov said: "The Bulgarian wine industry is undercapitalised and investment is necessary to respond to its sales successes in the West.
Federal Deposit Insurance Corp vice chairman, Thomas Hoenig, said, 'It's horrible, I mean they're horribly undercapitalised.
Infoserve also reported however that it remains undercapitalised, leaving it able to operate at current trading levels but unlikely to be able to continue to grow at its present rate without additional funding.
A Securities and Exchange Commission (SEC) filing has said that Midwest Bank & Trust is falling to a critically undercapitalised state.
The OFT set the deadline after it found that the bank was undercapitalised.
US Federal Reserve has determined Marco Community Bank of Marco Island, Florida as undercapitalised and has ordered the bank to take steps to remedy its position.
The Federal Deposit Insurance Corp (FDIC) has announced that Horizon Bank, a subsidiary of Horizon Financial Corp (NASDAQ: HRZB), is undercapitalised.
The Fed said that Michigan Heritage Bank (NASDAQ-OTCBB: MHBC) is 'critically undercapitalised.