Business Banking and Corporate Services Flashcards

Which type of NAB business account is specifically designed to help companies manage high-volume daily transactions with no monthly account fees based on transaction thresholds?

Answer: NAB Business Everyday Account

The NAB Business Everyday Account is designed for businesses with frequent daily transactions and offers fee structures suited to high-volume activity.

When a business client applies for a NAB Trade Finance facility, which document is typically required to evidence the underlying commercial transaction?

Answer: A commercial invoice or letter of credit

Trade finance facilities require evidence of a commercial transaction, most commonly a commercial invoice or letter of credit issued between buyer and seller.

A business customer wants to reduce the risk of currency fluctuation when importing goods from overseas. Which NAB product would best address this need?

Answer: NAB Foreign Exchange Forward Contract

A Foreign Exchange Forward Contract locks in an exchange rate for a future date, protecting businesses from adverse currency movements when importing.

What is the primary purpose of a NAB Corporate Mastercard issued to a business?

Answer: To allow employees to make authorized business purchases with centralized billing

A Corporate Mastercard enables employees to make approved business expenditures while consolidating charges onto a single corporate billing statement.

When assessing a business loan application, which financial ratio does NAB primarily use to evaluate a company's ability to service debt from its earnings?

Answer: Debt Service Coverage Ratio (DSCR)

The Debt Service Coverage Ratio compares a company's net operating income to its total debt obligations, indicating whether earnings are sufficient to cover loan repayments.

A small business owner asks about NAB's merchant services. Which of the following is a key benefit of NAB's EFTPOS solutions for small businesses?

Answer: Fast settlement of card payment proceeds into the business account

NAB's EFTPOS merchant services typically offer next-business-day settlement of card payment funds directly into the linked business account, improving cash flow.

Which NAB facility allows a business to draw funds, repay, and redraw as needed up to an approved limit, making it ideal for managing short-term working capital needs?

Answer: Business overdraft

A business overdraft is a revolving credit facility linked to the operating account, enabling businesses to draw, repay, and redraw up to an approved limit to manage cash flow gaps.