asset-leverage

Vocabulary Word

Definition

'Asset-leverage' is when you use your existing goods or property ('assets') to gain advantage or make more money ('leverage'). It's like renting out a spare room in your house to earn extra income.

Examples in Different Contexts

In business strategy, 'asset leverage' involves utilizing company assets to secure loans or other forms of financing to fuel growth or expansion. A CEO might state, 'Strategic asset leverage has enabled us to invest in new technologies and markets without diluting our equity.'

Practice Scenarios

Finance

Scenario:

I've came across an investment opportunity. Considering our home equity, what are our options?

Response:

Through asset leverage, we could take a home equity loan. It would allow us to invest in this opportunity.

Tech

Scenario:

Our unique software holds a lot of potential. How can we exploit this to gain an edge over competitors?

Response:

We could leverage our software as an asset. Licensing it to other companies could create additional revenue streams.