Not “having more to work with.” Borrowing to amplify an outcome you’re already exposed to — in either direction.
Leverage, in the technical sense, is the ratio of debt to equity a person or firm uses to fund an activity. It amplifies outcomes rather than creating them: a leveraged position with a good outcome returns more than an unleveraged one would have, and a leveraged position with a bad outcome loses more — potentially more than was originally committed. Decades of finance research have tried to explain why firms and individuals choose the debt levels they do, given that leverage amplifies downside as reliably as it amplifies upside.
Casual usage of “leverage” — having leverage, leveraging a relationship — often keeps only the sense of untapped potential and drops the amplified downside. The financial meaning keeps both halves together: leverage is potential and exposure at the same time.
Source: Myers, S.C., “The Capital Structure Puzzle,” The Journal of Finance, 1984.