Companies and organizations who use ESC collateral and investment protection programs let their investors and principals reduce their investment risk. The programs back the orginal investment with funded sources that mature during the life of the risk.

Time value of money and opportunity costs are not protected in these programs. Only the original investment principal is covered. So the risk of these two factors is covered by the investment itself.

If the business venture meets the predetermined benchmarks and goals then the investor is covered because the investment objectives have been met. While, on-the-other-hand, if the company does not perform and fails to provide the pre-set determinants then the entire investment is returned to the investor in exchange for the investor's ownership and financial position in the underlying investment and company.

ESC then seeks to protect its surety through M&A activities and/or liquidity events.