What is the difference between a commercial paper and a commercial bill?

Answer: Both the commercial paper and commercial bill are instruments used by banks for financial purposes.

Commercial paper is a financial instrument banks can use to raise money over a short period of less than one year. It has a fixed maturity value and face value which comes at a discounted price.

A commercial bill is a financial instrument which is used by a company to get the advance payment for the raised invoice of the sales which they have done, like selling products to the customer. They are used for the financial needs within a medium period. This is produced only after the actual sales of the product have been made.