What are unsecured promissory notes of $100,000 and up that mature in 270 days or less known as?

Unsecured promissory notes of $100,000 and up that mature in 270 days or less are known as commercial paper. This financial instrument is typically used by corporations to meet short-term financing needs, such as payroll or inventory purchases. They are issued at a discount to their face value and do not require collateral, categorizing them as unsecured.

Commercial paper is favored by companies because of its lower interest rates compared to other forms of short-term debt, such as bank loans. Since these notes generally have a short maturity period, they are an efficient way for firms to raise funds quickly without the complexities involved in negotiating bank loans.

In this context, terms like notes payable, bank loans, and bonds refer to different types of financial instruments or agreements that have varying maturities, uses, and levels of security. Understanding these distinctions helps in assessing which financial instrument is appropriate based on the company’s immediate financial needs and the cost of borrowing.