C Paper

Definition - What does C Paper mean?

The term C-paper can be referred to as a short term, unsecured debt instrument usually issued by any corporation. The aim of C-paper is to meet short term liabilities, financing of receivables, inventories, etc. Maturity of this debt is usually no longer than 270 days. This type of debt is commonly issued at discounted interest rate.

Justipedia explains C Paper

C-Paper is not backed by collateral. Companies with a good debt rating can easily find customers. One of the major benefits of C-paper is the fact that it need no registration with the SEC (Security and Exchange Commission) within its maturity period of 270 days. This makes it a very cost effective type of financing.

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