What kinds of firms use commercial paper?

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What kinds of firms use commercial paper?

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What kinds of firms use commercial paper?

Explanation & AnswerSolution by a verified expert

Explanation

Commercial paper is an unsecured short-term debt instrument issued by large corporations for financing the short-term receivables and meeting the short-term financial obligations. The maturity period of commercial paper lies between one day to nine months.
 
The large corporations with exceptionally strong credit ratings can use commercial paper for meeting their short-term financial obligations.

Verified Answer

Commercial paper is a debt tool issued by companies for financing temporary liabilities and inventories. It can be used by those companies which have outstanding credit ratings.

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