Commercial Paper

In finance and real estate, commercial paper refers to negotiable financial instruments used in business transactions, most commonly promissory notes. These instruments represent a written, legally enforceable promise to pay a specified sum of money either on demand or at a stated future date. Commercial paper is often used for short-term financing and may be transferred or sold to other parties, making it a liquid and flexible financial tool. In real estate–related transactions, commercial paper can be used to evidence debt obligations associated with business or investment activities rather than long-term mortgage financing.