NAB Business Banking and Corporate Services 1 — Questions and Answers
Question 1: 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?
- NAB Business Everyday Account (Correct answer)
- NAB Business Low Transaction Account
- NAB Business Premium Account
- NAB Corporate Saver Account
Correct 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.
Question 2: When a business client applies for a NAB Trade Finance facility, which document is typically required to evidence the underlying commercial transaction?
- A personal tax return
- A commercial invoice or letter of credit (Correct answer)
- A personal credit report
- A superannuation statement
Correct 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.
Question 3: A business customer wants to reduce the risk of currency fluctuation when importing goods from overseas. Which NAB product would best address this need?
- NAB Business Overdraft
- NAB Foreign Exchange Forward Contract (Correct answer)
- NAB Term Deposit
- NAB Business Visa Card
Correct 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.
Question 4: What is the primary purpose of a NAB Corporate Mastercard issued to a business?
- To provide personal credit for employees
- To allow employees to make authorized business purchases with centralized billing (Correct answer)
- To replace the company's main operating account
- To provide an overdraft facility for payroll
Correct 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.
Question 5: 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?
- Price-to-earnings ratio
- Debt Service Coverage Ratio (DSCR) (Correct answer)
- Current ratio
- Return on equity
Correct 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.
Question 6: 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?
- Unlimited free international wire transfers
- Fast settlement of card payment proceeds into the business account (Correct answer)
- Automatic VAT lodgment with the ATO
- Free unlimited cash withdrawals worldwide
Correct 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.
Question 7: 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?
- Fixed-term business loan
- Business overdraft (Correct answer)
- Commercial bill facility
- Equipment finance lease
Correct 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.
NAB Business Banking and Corporate Services 1
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?