Small Business Resources, Business Advice and Forms from AllBusiness.com
 
Get a Report on this industry

Commercial Paper

The best tips and advice from our vast library of articles, videos, and business tools
Free Industry Resources

Newly Added Articles

 

Are You Ready to Start Your Dream Business?

Sumer Morenz of D&B Digital TV hits the streets of San Francisco to ask people about the businesses they want to start.

Franchise Finder

franchise_sb_icon
Find your perfect franchise
Choose your location and industry and we'll show you the most relevant franchises.
Industry:
Location:

Business Glossary
icon - industry associations

Definitions for: commercial paper
commercial paper

short-term unsecured loan of a financially strong company having a maturity up to 270 days. It is typically issued on a discount basis meaning that the interest is subtracted immediately from the face of the debt to obtain the cash proceeds. Commercial paper interest rates are usually less than the prime interest rate (rate charged by banks to their best customers). Flexibility is another advantage; they can be issued at varying maturity dates when funds are needed.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.

Search the Business Glossary: