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short term commercial paper definition
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What is Short Term Commercial Paper?
Short term commercial paper is a type of unsecured, short-term debt instrument issued by corporations to raise funds for their immediate financing needs. It is usually issued for a period of 1 to 270 days, with a maximum maturity of 270 days.
This type of debt instrument is typically used by large and creditworthy corporations to finance their working capital needs, such as inventory purchases, payroll, and other short-term expenses. It is a cost-effective way for companies to raise funds quickly without having to go through the lengthy process of obtaining a bank loan.
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