Commercial paper is a type of unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates. Commercial paper is an important part of many money market funds. They are issued with a fixed interest rate and sold at a discount from face value. The maturity period of commercial paper typically ranges from overnight to just under 9 months. Since they are issued by well-known companies and are short-term, they are considered relatively low-risk.