Often referred to as " business receivables," or "trade paper." Notes, acceptances, etc., taken in the course of one's business in exchange for goods delivered, for instance, and not notes given in exchange for money with which to do business. If West, a grocer, sells Clark fifty barrels of flour and accepts the latter's note for the amount, such a note is " business paper." If West had borrowed $10,000 in cash from Clark, giving Clark his note therefor, and West wished this money to use in his business, such a note would be known as "paper." "Paper" given by a dry goods house, for instance, might be " business paper " or "mercantile paper," according to whether it was given by the dry goods house to a jobber for goods purchased of him, or was given in the form of a note in direct exchange for money borrowed to conduct the general business of the concern. As a matter of fact, all classes of notes, acceptances, bills of exchange, etc., irrespective of for what purpose given, are referred to as " commercial paper " or, more briefly, " paper," and the minute classification given above is not always adhered to in common usage.
The foregoing terms used to designate different kinds of "promises to pay " arise from usage.