A banker’s acceptance and commercial paper are similar instruments in that they are both low-risk fixed-income products. A key difference, though, is that a banker’s acceptance has the unconditional guarantee of the issuing bank and is used for international trade. Commercial paper, on the other hand, pays a fixed rate like a bond. Commercial paper can have a maturity out to a year (which is longer than a BA), and it is used to finance a firm’s short-term capital projects, not the movement of international goods.