▁lower ▁finan cing ▁costs ▁than ▁in ▁case ▁of ▁raising ▁the ▁whole ▁amount ▁at ▁one ▁interest ▁rate . ▁ ▁This , ▁together ▁with ▁the ▁possibility ▁of ▁continuous ▁offering , ▁may ▁play ▁a ▁significant ▁role ▁in ▁choosing , ▁which ▁instrument ▁to ▁use ▁for ▁finan cing . ▁ ▁Adv antages ▁▁▁ ▁The ▁rates ▁of ▁return ▁on ▁M T N s ▁are ▁usually ▁higher ▁than ▁on ▁other ▁short - term ▁invest ments . ▁ ▁These ▁notes ▁are ▁custom ▁defined ▁case ▁by ▁case ▁and ▁can ▁be ▁tail ored ▁to ▁both ▁issu ers ▁and ▁invest ors ▁needs ▁( with in ▁legal ▁requirements ). ▁▁ ▁For ▁invest ors , ▁it ▁may ▁serve ▁as ▁a ▁comprom ise ▁invest ment ▁opportunity ▁between ▁short - term ▁invest ments ▁and ▁b onds ▁with ▁long ▁m atur ities . ▁ ▁Av ail ability ▁to ▁raise ▁the ▁funds ▁non - public ly . ▁ ▁Dis adv antages ▁▁▁ ▁High er ▁costs ▁of ▁serv icing ▁▁ ▁Due ▁to ▁strict ▁issu ance ▁documentation ▁requirements , ▁issu ers ▁may ▁prefer ▁issu ing ▁public ▁b onds ▁instead . ▁ ▁History ▁ ▁M T N s ▁were ▁first ▁put ▁into ▁use ▁in ▁ 1 9 7 0 s , ▁when ▁the ▁General ▁Mot ors ▁Accept ance ▁Corporation ▁( G MA C ) ▁needed ▁to ▁issue ▁deb t ▁with ▁m atur ity ▁matching ▁to ▁the ▁car ▁lo ans ▁provided ▁to ▁deal ers hips ▁and ▁consum ers . ▁The ▁commercial ▁papers ▁were ▁not ▁suitable , ▁as ▁their ▁m atur ities ▁cannot ▁exceed ▁ 2 7 0 ▁days ▁and ▁the ▁under writing ▁costs ▁of