According to the Insolvency & Bankruptcy Code (IBC) of 2016, discounted invoices are considered as part of operational debt. Banks, bond issuers and lenders are grouped as financial creditors. In the event of winding up a company, secured financial creditors are given the highest priority. After them, come unsecured financial creditors and lastly, operational creditors. This means that financial creditors have the primary right to any available funds until their claims are met. In some cases, the funds might only cover the claims of financial creditors, leaving little or nothing for other creditors. As a result, bondholders gain a significant advantage when compared to investors who deal with discounted invoices.