leverage
LEE-ver-idj
/ˈliː.vər.ɪdʒ/
To use something to its maximum advantage; in finance, to use borrowed capital for an investment.
In a general business sense, it means using a small strength to achieve a much larger result.
The story behind the word. From the Old French 'lever', meaning 'to raise'. It originally referred to the physical tool (a lever) that allows a person to lift something much heavier than themselves.
Word relationships
- exploit: Exploit often has a negative connotation of taking unfair advantage; leverage is neutral and strategic.
- handicap: A handicap is a disadvantage that makes progress harder, whereas leverage makes it easier.
Commonly confused with
- utilize: Utilize simply means to put to use; leverage means to use in a way that multiplies your power.
Word family
- lever (noun): a rigid bar resting on a pivot, used to help move a heavy load.
Collocations
- leverage assets
- financial leverage
- gain leverage
- leverage technology
Idioms & expressions
- upper hand
Example sentences
- "We can leverage our existing customer base to launch our new product line." Strategic Planning
- "Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." Physics/General
Memory hook
Think of a 'Lever'—a small push on one end creates a big lift on the other. Use a little to get a lot.
When not to use
Avoid using it as a fancy word for 'use' in every situation; only use it when there is a strategic advantage being gained.
Fun facts
- In the 1980s, 'leveraged buyouts' became a famous (and controversial) way for investors to buy companies using mostly borrowed money.
Explore more words
agency, clout, outmaneuver, synergize, take advantage of, influence
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