Compared with bill financing,commercial paper financing offers a large creditworthy company:

Question

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Commercial paper financing offers lower costs as it does not involve any contingent liability when sold on. This means that the creditworthy company can obtain financing without having to provide collateral or pay high acceptance fees, resulting in lower overall costs. In contrast, bill financing may require collateral and attract higher fees, making it a less attractive option for large creditworthy companies.

Compared with Bill Financing,commercial Paper Financing Offers a Large Creditworthy