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TeachMeFinance.com - explain insufficient funds insufficient funds -- the situation in which the drawer's deposit balance is less than the amount of the drawer's check presented for payment. historic definition... Insufficient funds -- When a check is received by the bank upon which it is drawn and the drawer (issuer) has not sufficient funds to his credit with which to meet it the words "Insufficient funds" are stamped or written on the check and the check is rejected. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.