NAB Business Banking and Corporate Services 2

Question 1

Which NAB service is designed to help business clients consolidate funds from multiple subsidiary accounts into a single master account for more efficient cash management?

Accepted Answer

Notional pooling / cash concentration

Answer

Notional pooling or cash concentration services allow businesses to aggregate balances across multiple accounts into one master account, reducing idle funds and interest costs.

Question 2

When a business applies for NAB equipment finance to purchase machinery, which structure allows the business to use the asset without owning it while claiming lease payments as a tax deduction?

Accepted Answer

Finance lease

Answer

Under a finance lease, the financier owns the asset and the business leases it, enabling the business to deduct lease payments as an operating expense rather than depreciating a purchased asset.

Question 3

A corporate treasury manager at a NAB client company wants to invest surplus cash for 90 days at a guaranteed rate. Which product is most suitable?

Accepted Answer

NAB Business Term Deposit

Answer

A Business Term Deposit locks in a fixed interest rate for a specified period such as 90 days, providing certainty of return on surplus cash.

Question 4

Under NAB's business lending criteria, what does 'security' refer to in the context of a business loan application?

Accepted Answer

Assets pledged by the borrower as collateral to reduce the lender's risk

Answer

In lending, 'security' refers to assets such as property or equipment offered as collateral, which the bank can claim if the borrower defaults on the loan.

Question 5

Which document does NAB require to verify a business's legal structure and authority to operate when opening a corporate bank account?

Accepted Answer

Certificate of incorporation and constitutive documents

Answer

NAB requires a certificate of incorporation, constitution, or equivalent legal formation documents to confirm the entity's legal status and the authority of signatories.

(NAB) National Australia Bank Practice Test

(NAB) National Australia Bank Practice Test

NAB Business Banking and Corporate Services 2