Proceeds
Financial Dictionary — Finance & Cash Receipts
Definition
Revenue is generally in a business the total amount brought in, e.g. Sale proceeds. In insurance, it is the net amount received (whether from a check or from an insurance settlement) after deducting any discount or fees.
Detailed Explanation
Proceeds are amounts received from a transaction (e.g., sale proceeds, loan proceeds, insurance proceeds), usually net of related fees or discounts.
Common Uses
- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.
- Used to evaluate cash flows, financing costs, and capital structure.
Practical Example
- Example: Finance teams use **Proceeds** when planning funding needs and managing cash and risk.
Why This Term Matters
- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.