undercapitalization

Too little money

Undercapitalization is having insufficient funds or financial resources to sustain or grow a business.

A company that is undercapitalized lacks the capital needed to cover operating expenses, invest in growth, or weather downturns: Undercapitalization is the leading cause of small business failure.

The condition often forces owners to take on excessive debt or abandon operations entirely.

risk

default

Preset standard option

liabilities · delinquency · foreclosure · receivership · overextension · vulnerability · failure · collapse · credit risk · margin call

business

insolvency

Inability to pay debts

underfunded · deficit · underinvestment · insufficiency · liquidity · solvency · restructuring · debts · overextension · default

startup

bootstrapping

Self-starting without external input

funding gap · angel · venture · equity · crowdfunding · founders · scaling · pivot · bridge financing · dilution

banking

reserves

Resources held back

buffer · adequacy · write-down · bail-in · bailout · depositors

Categories
Opposites
capital adequacy

undercapitalizationovercapitalization

Excessive assigned monetary value

deep pockets · financial cushion · capitalized

financial risk profile

undercapitalizationoverleveraged

Excessively burdened by debt

overextended · overindebtedness · debt-laden

Family

under, capital, capitalize, capitalized, capitalizing, capitalization, capitalism, capitalist, capitalistic

Familiarity
Top 1,000,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G