An Operational Creditor is the entity who has a claim (over the corporate who owes some debt) for providing any of the four categories to the defaulted corporate- goods, services, employment and Government dues (central govt, state or local bodies). Basically, the operational creditor provides some goods and services to the corporate. Example is iron ore supplier or coal supplier to an iron and steel factory. Operational creditor under the Insolvency and Bankruptcy Code has only less role during the resolution process. He is not a member of the Committee of Creditors (CoC) and he doesn’t have any voting power under the CoC. The other type of creditor in the case of defaulting corporate is the Financial Creditor.
Operational Creditor – Claim over the corporate for giving goods, services, employment and government services.
Financial Creditor – gives funds in the form of loans to the corporate and buys bonds etc. of the corporate.
