The proceeds of financing contracts are similar to capital guarantee funds or guaranteed investment contracts, both instruments also promising a fixed rate of return at low or no risk for the investor. In other words, guarantee funds can generally be invested without risk of loss and are generally considered risk-free. However, like certificates of deposit or pension certificates, financing agreements generally offer only modest returns. Mutual of Omaha offers a platform for financing contractual products available to institutional investors. These financing agreements are marketed as conservative interest-rate products with regular income distributions and are offered on fixed or variable terms. The deposited funds are held as part of Omaha Life`s general life insurance account. A financing agreement is an investment vehicle in which a person pays a lump sum to the seller in exchange for a fixed return. Financing agreements are generally considered low risk and are therefore often acquired by pension funds, investment funds and other similar companies. Financing agreements and other similar types of investments often have liquidity constraints and require prior notification – either by the investor or by issuing – for early withdrawal or termination of the contract. This is why agreements are often aimed at wealthy and institutional investors with substantial capitals for long-term investments. Mutual funds and pension plans often purchase financing agreements because of the security and predictability they offer. The parties recognize and accept that doubts or ambiguities about the importance, application or applicability of a clause or provision of the financing contract are not interpreted or interpreted against the IESO or the beneficiary in the interpretation of that clause or provision.
Financing products can be offered worldwide and by many types of issuers. They generally do not require registration and often have a higher return than money funds. Some products may be linked to selling options that allow an investor to terminate the contract after a specified period.