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.
Preset standard option
- illiquidityDifficulty converting to cash
- distressSevere anxiety or suffering
- exposureState of being unprotected
- liabilitiesAmounts owed to others
delinquency · foreclosure · receivership · overextension · vulnerability · failure · collapse · credit risk
Inability to pay debts
- cashflowNet money movement
- bankruptcyLegal status when insolvent
- shortfallFailure to reach quota
- underfundedInsufficiently financially supported
deficit · underinvestment · insufficiency · liquidity · solvency · restructuring · debts · overextension
Self-starting without external input
- seedEmbryonic plant capsule
- burn rateCapital expenditure velocity
- runwayPaved path for planes
- funding gapUnmet financial need
angel · venture · equity · crowdfunding · founders · scaling · pivot · bridge financing
Resources held back
- BaselSwiss Rhine city
- regulatoryInvolving official oversight
- stress testEvaluating performance under strain
- bufferProtective intermediate space
adequacy · write-down · bail-in · bailout · depositors
default
Preset standard option
- illiquidityDifficulty converting to cash
- distressSevere anxiety or suffering
- exposureState of being unprotected
liabilities · delinquency · foreclosure · receivership · overextension · vulnerability · failure · collapse · credit risk · margin call
insolvency
Inability to pay debts
- cashflowNet money movement
- bankruptcyLegal status when insolvent
- shortfallFailure to reach quota
underfunded · deficit · underinvestment · insufficiency · liquidity · solvency · restructuring · debts · overextension · default
bootstrapping
Self-starting without external input
funding gap · angel · venture · equity · crowdfunding · founders · scaling · pivot · bridge financing · dilution
reserves
Resources held back
- BaselSwiss Rhine city
- regulatoryInvolving official oversight
- stress testEvaluating performance under strain
buffer · adequacy · write-down · bail-in · bailout · depositors
- business failurebankruptcy court, insolvency, liquidation, closure, shutdown
- shortfallsdeficit, shortfall, budget shortfall, shortage, gap
under, capital, capitalize, capitalized, capitalizing, capitalization, capitalism, capitalist, capitalistic