- undercapitalized
- A business has insufficient capital to carry out its normal functions. Bloomberg Financial Dictionary
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undercapitalized un‧der‧cap‧i‧tal‧ized [ˌʌndəˈkæptl-aɪzd ǁ -ər-] also undercapitalised adjectiveFINANCE if a company is undercapitalized, it has less capital than it needs in order to operate effectively and grow:• If you set up a store and you're undercapitalized, you're going to go bust (= bankrupt ) .
• The business is suffering from undercapitalization.
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Term used when a business is not supplied with enough funds by its owners to support its activities and provide for any needed expansion.* * *
undercapitalized UK US (UK also undercapitalised) /ˌʌndəˈkæpɪtəlaɪzd/ adjective FINANCE► if a business is undercapitalized, it has less money than it needs in order to work effectively or to grow: »As with all small businesses, we are undercapitalized.
»Many business travelers have long endured poor service, often from undercapitalized state carriers.
Financial and business terms. 2012.