How does commercial paper (CP) differ from corporate bonds?

Commercial paper (CP) is a security issued by a company in the form of a promissory note to raise short-term funds, usually with a maturity of 1 year or less.

Its issuance procedure is simpler than that of corporate bonds, but because it is usually issued unsecured, you may not get your principal back if the issuer defaults. In the past, CP of distressed companies has been sold in large quantities to individual investors, causing losses, so it is important to check the credit rating and financial condition.