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Definition of Leverage. action of a lever; mechanical power supplied by a lever; influence, ability to affect or alter people or circumstances; use of borrowed money to increase the return on an investment. use one's influence to affect people or circumstances; increase the return on an investment by using borrowed money.
A process undertaken by a company in an attempt to reduce its financial leverage. Financial leverage can be beneficial for a company, but if it becomes too risky or harmful, the company may need to deleverage itself by decreasing the amount of debt that it has (by paying it off). also called degearing.