leverage

leverage — noun

1. the extra force that a lever gives you when you use it to lift, move, or open so

1.nounB2
Definition

the extra force that a lever gives you when you use it to lift, move, or open something heavy or stuck.

Example

The construction worker used a long metal bar to gain leverage on the heavy stone.

get leverage on + object

Tamar placed the fulcrum closer to the rock and gained enough leverage to lift it.

Common collocations
  • get leverage on
  • gain leverage
  • provide leverage
  • use leverage
Synonyms
  • mechanical advantage

    the technical term for the force multiplication a lever provides

  • purchase

    a firm grip or hold that gives you the power to move something

2. the power to control or affect what people do or how a situation develops, often

2.nounB2
Definition

the power to control or affect what people do or how a situation develops, often because you have something they want.

Example

The union used the threat of a strike as leverage in salary negotiations.

use + something + as leverage (in + context)

Lucía gained bargaining leverage by showing data on the company's falling profits.

bargaining leverage

Common collocations
  • bargaining leverage
  • political leverage
  • gain leverage
  • use as leverage
  • leverage over
  • leverage with
Synonyms
  • influence

    the most general term; leverage suggests influence backed by a concrete advantage

  • clout

    informal; emphasizes political or social power rather than negotiation

  • pull

    informal; suggests influence gained through personal connections

Antonyms
  • weakness

    the state of having no bargaining power

Usage Note

Often followed by over, with, or in. The subject is usually a person, group, or factor that holds something of value (e.g., information, resources, a threat) that the other party needs.

Common Mistakes

The manager had leverage of his team.
The manager had leverage over his team.
the correct preposition is over, not of, when describing who is influenced.

3. a calculation that compares how much a company has borrowed to the total worth o

3.nounC1
Definition

a calculation that compares how much a company has borrowed to the total worth of its assets, used as a measure of financial risk.

Example

The bank reviewed the company's leverage ratio before approving the loan.

leverage ratio

High leverage means the firm has borrowed heavily compared to what it owns.

Common collocations
  • high leverage
  • low leverage
  • leverage ratio
  • degree of leverage
  • excessive leverage
Synonyms
  • gearing

    the British English equivalent of the financial leverage ratio

Usage Note

Frequently used in finance with modifiers such as high, low, excessive. Often appears as leverage ratio or degree of leverage.

Common Mistakes

Leverage only means how much you can influence others.
In finance, leverage also refers to a company's debt compared to its value.
learners often know the influence sense but miss the financial meaning.

4. the strategy of taking out loans to fund investments, with the aim of earning mo

4.nounC1
Definition

the strategy of taking out loans to fund investments, with the aim of earning more from the investment than the loan costs.

Example

The investment firm used leverage to acquire a chain of hotels during the market downturn.

use leverage to + infinitive (purpose)

Real estate investors rely on leverage by taking out a mortgage to buy a property.

rely on leverage by + gerund

Common collocations
  • use leverage
  • provide leverage
  • through leverage
  • financial leverage
Synonyms
  • borrowing

    a neutral term without the strategic implication of amplifying returns

  • debt financing

    more formal; opposite of equity financing

Antonyms

Usage Note

Distinguish from noun/3: sense 3 describes the static ratio of debt to value, while sense 4 describes the active strategy of using debt as a financial tool. The verb form (verb/2) mirrors this active strategy.

Common Mistakes

I used leverage to buy a car with a loan.
I used leverage to buy an investment property with a mortgage.
leverage in finance usually refers to investments expected to grow in value, not personal consumption.

leverage — verb

Word family

  • lever
    nounB1
  • leveraged
    adjectiveC1
  • leveraging
    nounC1

Synonym discussion

Sense: noun/2

All four words describe the ability to affect what people do or think, but they differ in source and register. Influence is the broadest term and works in most contexts — you can have influence over a friend, a policy, or a market. Leverage adds the idea that your influence comes from a concrete advantage you hold (information, a threat, a resource the other side needs). Clout is informal and suggests power rooted in money, status, or political connections; you might say 'a wealthy donor with political clout.' Pull is even more informal and implies influence gained through personal relationships — 'He used his family pull to get the job.' In formal writing, influence and leverage are preferred; in everyday conversation, clout and pull are common but may sound too casual in business reports. Compare: 'The union had influence over working conditions' (general), versus 'The union had leverage because it could call a strike' (specific advantage).

influence ↗leverage ↗cloutpull ↗

Common collocations

Nouns

Adverbs

Phrases

  • bring leverage to bear on
  • gain leverage over
  • lose leverage with

Prepositions

Etymology

Old FrenchMiddle EnglishEnglish

The word leverage was formed in the early 1700s by adding the noun suffix -age to the word lever. Lever itself came into English from Old French, where levier meant 'a lifter' — something used to raise or move heavy objects. The original meaning of leverage was purely mechanical: the force gained by using a lever. By the mid-1900s, the term had broadened into a business metaphor for any kind of strategic advantage or influence. In the 1970s, it became a standard finance term for using borrowed money to increase the size of an investment, giving rise to phrases like leveraged buyout that are still common in corporate news today.