Download the BYJU'S Exam Prep App for free IAS preparation videos & tests - Download the BYJU'S Exam Prep App for free IAS preparation videos & tests -
× DOWNLOAD NOW

What is the difference between commercial paper and commercial bill?

Commercial paper and commercial bill are both financial instruments used by banks . Given below are the points of difference between them –

Commercial Papers Commercial Bills
  • Commercial paper is used by banks to raise finances for a short time period, usually less than a year.
  • It is a discounted instrument having a face value and a maturity value. 
  • Commercial bill is an instrument that helps companies to get advance payment for the invoices they raise after making sales to their customers.
  • Commercial bills are issued for financing needs of the medium term.
  • It comes into effect only after a sale has taken place.

Further Readings – 

  1. Types of Cheque in Indian Banking System
  2. Chequebook Diplomacy
  3. Financial Market
Related Links
Types of Money Syllabus and Strategy for UPSC Economy
List of Committees & Their Purposes UPSC Mains General Studies Paper-3 Strategy, Syllabus & Structure
National Payments Corporation of India (NPCI)  UPSC Mains Economy Questions
IAS QUESTIONS Related Links
Causes Of Migration NDP
Polity Meaning Article 144
Sikh Empire Functions Of GST Council
Article 279A Which Country Has Most Tigers
Types Of Nationalism 84th Amendment Of Indian Constitution

Comments

Leave a Comment

Your Mobile number and Email id will not be published.

*

*