A businesss financial statements show a significant increase in intangible assets as a percentage of total assets. What is the likely impact of this on the businesss borrowing needs?

Borrowing needs will remain the same because intangible assets do not require cash. Borrowing needs will remain the same because intangible assets are financed with equity. Borrowing needs are likely to increase during the period. Borrowing needs are likely to decrease during the period.

(Note: Please provide the right answer with justification)