Following are the factors that affect the fixed capital requirements of a company : 

1. Nature of business – A trading concern needs lower fixed capital since it does not require to purchase plant and machinery etc. A manufacturing concern would require heavy investment in fixed assets to purchase plant and machinery etc. 

2. Growth prospects – If an organisation expects higher growth prospects, it will require higher investment in fixed assets to create higher capacity of production. 

3. Diversification – More fixed capital will be required in case of companies which have diversity of production lines as compared to companies which do not have much of diversification. 

4. Level of collaboration – If some business organisations share each other’s facilities, these organisations will require lesser fixed capital. If there is no collaboration, an organisation will require more fixed capital to rim its business smoothly. 

5. Technology upgradation – Some assets such as computers become obsolete faster and are replaced much sooner than other fixed assets say furniture. Thus, such organisations which use assets which are prone to obsolescence require higher fixed capital to purchase such assets.