generic term for short-term debt instruments, such as bankers' acceptances, commercial paper, and documentary drafts. Short-term obligations are a source of credit to businesses needing temporary financing, for example, an importer who needs bank financing to cover the cost of merchandise until his inventory is sold. Short-term paper with maturities under 90 days is eligible for rediscount at a Federal Reserve Bank; that is, it can be used as collateral for a Federal Reserve credit advance.
credit given, evidenced by a written obligation that is backed by property; slang for debt, as when a seller finances a sale.
shorthand for short-term commercial paper, which is an unsecured note issued by a corporation. The term is also more loosely used to refer to all debt issued by a company, as in "ABC has $100 million in short and long-term paper outstanding."
credit given, evidenced by a written obligation that is given or received instead of cash.
Example: Dunn sells his property for $100,000. He receives $20,000 cash and $80,000 of paper that is payable over 20 years at 10% interest.
