Wayne's One Minute Newsletter

A newsletter for you to grow smarter, wiser and wealthier.
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What Is Financial Leverage & Why Is It Important?

Financial leverage is the use of borrowed money to increase the potential return on an investment, but it also increases financial risk.

Why is financial leverage important?

Financial leverage can amplify returns, but it also increases risk. Proper management of leverage is crucial for financial stability and growth.

An easy way to understand financial leverage is:

When a company borrows money to invest, hoping to earn more than the interest they pay on the loan, thus increasing their potential profits.

Using financial leverage, we've maximized our ability to expand services and infrastructure by borrowing at strategic times. This approach has enabled us to scale rapidly, enhancing our service offerings without diluting equity, ultimately increasing shareholder value as we capitalize on growth opportunities.

Frequently Asked Questions

What is financial leverage and how is it used?

How does financial leverage affect company risk?

What are the benefits of using financial leverage?

What are the dangers of excessive financial leverage?

How does financial leverage impact return on equity?

What factors should companies consider when using leverage?

Wayne Yap Minute

Daily newsletter that teaches you how to add $1 million to your business

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Are You Making This Mistake?

After investing over $1.2m in gurus, masterminds and coaching, I discovered that the number one reason people don’t succeed is because they’re following the wrong path.

There are people like myself and Elon Musk who are Pure Visionaries at heart. Then there are people like MrBeast, Kylie Jenner and Steve Jobs, who are different.

That’s why I invested 100s of hours to create this free quiz: So that more people can find the path that’s most suitable for them.

Before we start charging for the quiz in 2025, discover your Archetype for Free by clicking “Start Quiz” below.

Start Quiz