What does "leverage" mean?

1. (influence or power) the power to influence people or events to get what you want. 2. (financial debt) the use of borrowed money to buy an investment, hoping the profit will be more than the interest. 3. (mechanical force) the extra force you get by using a lever to move something heavy. 4. (to use for advantage) to use something you already have to achieve something new or better.

How do you use "leverage"?

Often used with the verbs 'have', 'gain', or 'use'. In British English, this concept is often referred to as 'gearing'.

leverage

n. · v.

US //ˈɫɛvɝɪdʒ// UK //lˈiːvəɹɪdʒ// lever·age

1 influence or power (n.)
B2 Upper Intermediate

the power to influence people or events to get what you want.

strategic advantage or the power to act effectively in a negotiation or situation.

Example

The union has a lot of leverage because the company cannot find enough workers.

Example

The small nation gained significant diplomatic leverage by controlling the only deep-water port in the region.

Usage

Often used with the verbs 'have', 'gain', or 'use'.
- weakness
- impotence
2 financial debt (n.)
C1 Advanced Technical Science

the use of borrowed money to buy an investment, hoping the profit will be more than the interest.

the use of credit or borrowed capital to increase the potential return of an investment.

Example

The company used high leverage to buy its competitor, which made the bank nervous.

Example

Aggressive financial leverage can amplify gains during a market upswing, but it also exposes the firm to catastrophic risks if asset values decline.

Usage

In British English, this concept is often referred to as 'gearing'.
- gearing
- debt
- equity

Show 2 more sensesShow fewer

3 mechanical force (n.)
C1 Advanced Technical Science

the extra force you get by using a lever to move something heavy.

the mechanical advantage gained by using a lever or a similar physical system.

Example

A longer handle on the wrench provides more leverage to turn the bolt.

Example

The design of the crowbar maximises leverage, allowing a single operator to lift weights far beyond their natural strength.
- mechanical advantage
- force
4 to use for advantage (v.)
B2 Upper Intermediate Academic

to use something you already have to achieve something new or better.

to exploit an existing asset, relationship, or resource to its fullest potential.

Example

We can leverage our social media following to promote the new product.

Example

The university seeks to leverage its research reputation to attract more international funding for the engineering department.

Teacher's tip

While common in business and academic contexts, some style guides discourage using 'leverage' as a verb, preferring 'use' or 'exploit'.
- exploit
- utilise
- capitalise on
- waste

Origin

From lever + -age. The verb likely comes from martial arts/judo usage, where one would "use an opponent's leverage (i.e. their weight, height, centre of balance, etc.)" against them in order to defeat them.