What is the reason business owners want to use leverage?

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2026-03-28 19:00

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Business owners use leverage to amplify their potential returns on investment by using borrowed funds to finance operations or growth. By leveraging assets, they can increase their purchasing power, allowing for expansion and increased market presence without requiring substantial personal capital. This strategy can enhance profitability, but it also carries risks, as it increases financial obligations and vulnerability to market fluctuations.

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