deleverage

Definition

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.

Use deleverage in a sentence

You should try and figure out a way to deleverage a company before you start to negotiate with them in the future.

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It is of the utmost importance for small businesses to keep on top of their deleverage practices to ensure they do not default on any debts.

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Company management realized the amount of debt they were carrying had become treacherous and immediately began a deleverage process to reduce the risk.

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delayed settlement processing deleveraged floater