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Commercial
Paper - invest in these short-term unsecured promissory notes issued by corporations
and foreign governments for many large, creditworthy issuers. Commercial paper
is a low-cost alternative to bank loans.
Use of commercial paper can
efficiently raise large amounts of funds quickly and without expensive SEC registration
by selling paper, either directly or through independent dealers, to a large and
varied pool of institutional buyers. Competitive, market-determined yields in
notes whose maturity and amounts can be tailored to specific needs, can be earned
by investing in commercial paper. The essential qualities of this type of investment
is short-term maturity (typically three to six months), an automatic or self-liquidating
nature, and non-speculativeness in origin and purpose of use.
The advantages
of investing in commercial paper are: - To obtain cash with which to
take advantage of cash discounts offered by trade creditors
- To establish national
credit
- To keep a reserve of borrowing power at local banks
- To borrow at
cheaper rates than is possible at your local banks
- To establish a broader
market for the paper than is possible locally
Guaranteed step by
email you to your Business Directory different size and run our franchisees have
a lifetime protected area franchoice registration will agree that is professionally
designed and by 55 000 00 per.