An unsecured, short-term loan issued by a bank or corporation in the international money market, denominated in a currency that differs from the corporation's domestic currency. An example would be, a United States corporation issuing a loan through the international money market denominated in Canadian dollars. This commercial paper would elapse in and be due within a year, hence the reason it’s sold in the money market. Commercial paper is an easy way for corporations to finance accounts receivable, inventories and meeting short-term liabilities. A major benefit of commercial paper is corporations do not need to register them with the Securities and Exchange Commission (SEC) if, and only if, they mature within 270 days. This makes this type of financing very cost effective, but the income has its limitations and can only be used for current assets and not fixed assets without the involvement of the SEC. Commercial paper is not backed by any means of collateral, so corporations with a high credit rating find a more readily supply of investors compared to corporations with low credit ratings. These papers are sold at a discount or on an interest-bearing basis. The euro-commercial paper differs from the traditional commercial paper in that ECP are issued up to 360 days. The ECP are issued through dealers, in contrast to euronote facilities, which are issued through a tender panel . Euro commercial paper gives issuers quicker access to funds than euronotes, sometimes even same day funds.

Sources:

http://www.investopedia.com/terms/c/commercialpaper.asp

http://www.trading-glossary.com/e0162.asp

http://www.allbusiness.com/glossaries/euro-commercial-paper/4953712-1.html