The use of borrowed funds to finance less than 50% of a purchase of assets. In a leveraged program borrowed funds are used to finance more than 50%.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A policy or project in which a company borrows less than 50% of the amount used to purchase an asset. An unleveraged program carries fewer risks than a leveraged program, but may prevent the company from purchasing as many assets as it needs or wants for its operations.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved