TPG Industries, a company that manufactures athletic equipment, began business in September 2016. Below is the operating section of the companys statement of cash flows. Although management has not disclosed a sales forecast, they forecast an increase in sales next year. Because of this, management plans to add $1,600,000 to inventory. However, at the end of the year, the company has less than $80,000 in cash.

Cash flows from operating activities:
Net loss	$(600,000)
Depreciation	168,000
Deposits with suppliers	(480,000)
Increase in prepaid assets	(24,000)
Increase in accounts payable	320,000
Increase in accrued liabilities	60,000
Net cash used by operating activities	$(556,000)

You have just taken the position of financial analyst with a major investment bank. Your supervisor, John Denbear, has asked you to write a short memo about problems facing TPG. You know that losses and negative cash flow during start-up phases of businesses are common. In your memo, include discussion about the typical sources of financing that may or may not be available to support TPGs inventory expansion.