Leverage
There are several meanings of the word leverage:
- Traditionally, a lever was a slim object that, because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground; or, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object.
- Leverage is also said to exist when an individual, a firm or larger entity is able to steer people, situations and events to its advantage (to exert influence or force). So, for example, a main contractor may have enough leverage over suppliers to ensure they give the best possible prices; perhaps by virtue of the contractor’s size and influence.
- In commercial situations, leverage is said to occur when borrowed capital is used to fund an investment, e.g where debt is incurred to grow a business, such as expanding a firm’s asset base by borrowing. In this case, leveraging is an investment strategy which uses borrowed money to increase the returns on investment. A company is said to be ‘highly leveraged’ if rather than relying on investor (equity) financing, it relies heavily on debt financing (borrowing).
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Extended reality in a post-pandemic world.
Can XR technology be leveraged in design & construction?
Or are you capping.
STEM ambassadors needed for ICE CityZen award.
Digital gaming competition for UK students aged 16 to 18.
Heritage protection in England vs Australia.
Fire doors and the Fire Door Inspection Scheme.
Three-quarters of fire doors fail inspections
UN International Day for Biological Diversity, May 22.
The role of geoparks, biospheres and world heritage sites.
BSRIA conference 2022, June 23.
Just one month to go ! Find out more here.
Restoring Broadbent’s Bath House
A new gallery for the University of Huddersfield.
Corruption in the construction industry.
What will it take to stop it ?
To celebrate world bee day 2022 !
Just one month until the changes to part L come into effect.
Not forgetting part F and the new part overheating part O.
Heat Pump demand rises by one quarter.
As energy prices jump up in cost.
With people in the UK from Ukraine.
Industry leader Steve Murray takes on role.
An abundant and versatile building material.
How overheating complicates ending gas in the UK.
600,000 heat pump installations targeted per year by 2028.
Cost planning, control and related articles on DB.
Helping prevent those unwanted outcomes.
ICE debate Public transport - post pandemic.
How has transport changed due to Covid-19 ?
Cross-ventilation in buildings. Do you have it ?
Will you need it ? after June 15 and the new Part O ?
Share your knowledge with the industry.
Create an account and write the first of many articles.
The green jobs delivery group.
CIAT commentary after the first meeting.
Liverpool's world heritage site status
Who is to blame?
Research recommends focussing on portfolio success rather than project success.