What Are The Advantages Of Commercial Papers?

1.	What Are The Advantages Of Commercial Papers?
Answer» ADVANTAGES of commercial papers: It is quick and COST effective way of raising working capital. Best way to the company to take the advantage of short TERM interest fluctuations in the market It provides the exit option to the investors to quit the investment. They are cheaper than a bank loan. As commercial papers are required to be rated, good rating reduces the cost of capital for the company. It is unsecured and thus does not create any LIENS on assets of the company. It has a wide range of maturity It is exempt from federal SEC and State securities registration REQUIREMENTS. Advantages of commercial papers:

Answer»

ADVANTAGES of commercial papers:

It is quick and COST effective way of raising working capital.
Best way to the company to take the advantage of short TERM interest fluctuations in the market
It provides the exit option to the investors to quit the investment.
They are cheaper than a bank loan.
As commercial papers are required to be rated, good rating reduces the cost of capital for the company.
It is unsecured and thus does not create any LIENS on assets of the company.
It has a wide range of maturity
It is exempt from federal SEC and State securities registration REQUIREMENTS.

Advantages of commercial papers:

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