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A traditional source of capital acquisition for a new small business venture has been borrowing against home equity, either as collateral or for liquid assets. Consider the current economic state of the overall US and your own local residential housing market, the tightening of credit and "subprime" credit (for borrowers with less than optimal credit histories) and the challenges and limitations of home equity, and how these can impact new venture development and access to capital.
Length: 2 pages (550 Words)
Types of Capital
Fixed capital is the finance required to buy permanent or long-term assets for a company (Usher productions, n.d). The assets include items such as land, buildings, machines, computers, and other equipment. The assets could increase efficiency and cash flows leading to improved profits. Usually, money used in acquiring fixed assets cannot be used in other purposes.