Flexible short-term funding
Commercial paper offers an alternative to commercial finance and traditional financing techniques, such as overdrafts and straight loans, if you are looking to finance short-term operational needs like inventories and receivables. Commercial paper can diversify your funding sources, reserving your bank resources for other needs. It is very flexible, as you can set the timing, amount and maturity of the issue.
Commercial paper can be defined as unsecured short-term senior debt issued in the money market. It brings you the flexibility of a bank loan and the broad investor base of a bond. Most commercial paper is issued with a maturity of up to one year, not bearing any interest but issued at a discount.
Usually the placement of the paper is not guaranteed. As most financial institutions work on a best effort basis, expertise and placing power are of the utmost importance to convince investors of your quality and to allow you to reach a diversified group of them.
The in-house expertise and the contacts we have at BNP Paribas Fortis mean that our best efforts virtually guarantee a successful outcome for your commercial paper issuance.