What does "leverage" mean in business?
"Leverage" as a business verb means to use something to maximum advantage. Here's what it means and why it divides opinion.
As a business verb - to use something to achieve maximum advantage
"We should leverage our existing customer base for the new product."
"Let's leverage our relationships with suppliers."
"Leverage your data to improve targeting."
As a noun in finance - debt used to amplify returns
"The company is highly leveraged." (has a lot of debt relative to equity)
"Financial leverage increases both potential gains and risks."
The controversy
Using leverage as a verb ("leverage our resources") is widely criticised as jargon - it means nothing that "use" or "make the most of" doesn't express more plainly. In British English particularly, leverage as a verb is seen as Americanised corporate-speak.
But it persists because
It implies strategic, deliberate use of an advantage - more than just "use," it suggests maximising what you already have.
A native would say
- "Make the most of" - clear, plain
- "Use" / "utilise" - direct
- "Build on" - use as a foundation
- "Capitalise on" - take advantage of an opportunity
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Corporate jargon. Common in presentations and strategy documents; avoid in plain-English communication.
What does "leverage" mean?
"Leverage" as a business verb means to use something to maximum advantage. Here's what it means and why it divides opinion.
Is "leverage" formal or informal?
Corporate jargon. Common in presentations and strategy documents; avoid in plain-English communication.
What's another way to say "leverage"?
- "Make the most of" - clear, plain
- "Use" / "utilise" - direct
- "Build on" - use as a foundation
- "Capitalise on" - take advantage of an opportunity
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