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Unformatted text preview: companies pretty easily. and discounted bills. Commercial paper This is an unsecured promissory note with a fixed maturity of 1 to 270 days. This is a money-market security issued by large banks and corporations to get money to meet short term debt obligations and is only backed by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note. Companies who have excellent credit are the only ones who can get this. So most companies might not choose this. Foreign Borrowing These are a loan by a foreign bank and held at a lower interest rate then domesticate banks. Companies might choose this one because of the lower interest on the loan. Collateral Loans This is when a company uses the inventory as collateral to get a loan. Companies who use this could lose their inventory if the loan is not paid back in time....
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This note was uploaded on 05/13/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.
- Spring '08