Novo is a financial technology company headquartered in Miami that provides business banking solutions to over 175,000 small business owners. Michael Rangel and Tyler McIntyre founded the fintech company in 2016.
Novo helps businesses unlock their potential with a suite of financial tools. Users get quicker transfers, the ability to allocate funds for taxes through Novo Reserves, and receive revenue sooner, minimizing cash flow issues. Novo’s business tool integrations let you manage your favorite resources in a single dashboard. As a result, you don’t need over a dozen tabs open to manage your business and analyze your financial numbers.
Novo serves small business owners across various industries, with a strong focus on accountants & bookkeepers, professional services, retail, e-commerce, health & wellness, food, construction, and trucking. It has great features for any small business owner who wants to unlock their company’s potential. This Novo review will cover how the bank helps business owners and what you should know before getting started.
What is Novo?
Novo is a fintech company that makes it easier for small business owners to manage their finances. Clients can send invoices, make payments, and receive funds through the Novo app. Novo integrates with several tools, such as Stripe and Shopify, to put your finances in a single dashboard. The online bank has many features, such as the virtual Novo debit card, invoice management, and spending insights, that help business owners gain an edge over the competition.
Is Novo a Bank?
Novo is a fintech company that provides small business banking services powered by Middlesex Federal Savings, F.A., a full-service community bank based in Massachusetts. While Novo is not a bank, you can create a Novo business checking account, and your deposits will be FDIC-insured up to $250,000 through Middlesex Federal Savings. While Novo itself is not a bank, the company offers banking services through its partnerships that function like any other bank.
What Does Novo Offer?
Novo has a core offer that has attracted over 200,000 small business owners. Most of Novo’s account holders are small businesses that earn less than $250,000 per year and have no venture capital backing. However, Novo also works with businesses that generate over $250,000 per year in revenue and have venture capital backing.
The fintech company specializes in business checking accounts, but when you create an account, you get access to the entire dashboard. Novo’s dashboard has enhanced features that help the company stand out from financial institutions and other fintech companies. The company also offers business banking solutions like accounting, auto-generated reports, and other perks. If you need extra cash, you can get up to $75,000 within 24 hours through Novo Funding.
For some business owners, Novo serves as an all-in-one business banking solution. However, it’s important to determine if Novo is right for you before committing to the fintech company. Discover the key details about their business checking accounts and how opening an account can improve your company’s finances.
Novo Business Checking Account
Novo’s business checking account is far more than just a place to store money and make payments. Novo places an emphasis on speed, as the fintech company gives every member access to a Novo Virtual Card. This debit card makes it easy to use your funds and shows up in your account while you wait for your physical debit card to arrive in the mail.
Receiving a virtual debit card sooner makes it easier to address immediate expenses. Most businesses fail because of poor cash flow management, and any restrictions can risk financial stress. Novo Boost addresses this issue by speeding up your Stripe payments. Novo clients receive Stripe payments up to 95% faster without any additional fees.
Express ACH takes the same concept and extends it to the payments you make to employees, vendors, and other partners. Your payments can arrive on the same day or the following day instead of having your valued partners wait several days to receive payments.
These rapid payments help you address cash flow concerns and serve your clients, but having all of that cash move around can create additional problems. In addition, tax season comes for every business owner, but some do not adequately prepare for the incoming bill.
Novo’s automated budgeting feature puts you in a better position to pay your taxes. This “Reserves” feature lets you set aside money for taxes, expenses, savings, and other objectives. You can look at the Federal, state, and local tax brackets to estimate your tax percentage. For example, if you pay 25% of your proceeds to the government, you can allocate those funds for tax season, so you don’t have to scramble to raise funds at the last minute.
That last-minute scramble can create significant cash flow problems and force you to take out a loan. While loans can help you grow your business, some of them are avoidable with prudent financial planning. Novo makes it easier to plan your way to success.
Reserves also make it easier to integrate Profit First into your business. You can enable Profit First budgeting so you can build a sustainable business. Some small business owners focus too much on top-line growth without addressing profitability. Most business bank accounts only store your money, but as these features demonstrate, Novo goes above and beyond to provide your company with the tools it needs to succeed.
Novo Funding helps business owners get access to capital when they need it the most. Business owners can borrow up to 475,000 and receive the funds instantly. The flexible working capital helps with short-term financial needs and has a monthly 1.5% factor rate.
You can apply online for Novo Funding within 10 minutes and receive a response within 24 hours. Applying online is risk-free since Novo only runs a soft credit check. These types of credit checks do not impact your credit score. Novo gives you quick cash when you have insufficient funds to cover operating costs or long-term ambitions.
Most traditional banks are less generous with their credit checks and the time it takes to receive funds. While financial institutions may let you borrow more money, it can take over a week to receive your loan. Most lenders also run hard credit checks, which will reduce your credit score by a few points. Novo account holders get to skip these inconveniences when requesting extra capital.
Your Novo funds are continuously available when you repay them back. This financial product functions more similarly to a revolving line of credit than an installment loan. Novo will provide a 6-month repayment schedule, and you can repay it early at no additional cost. Some banks charge monthly fees, but with Novo, you only have to pay a monthly 1.5% factor rate.
How Does Novo Compare to Banks Offering Business Bank Accounts?
Most banks do not offer the same features or suite of money management tools as Novo. Traditional banks also have a slower approach to money transfers. It will take longer to receive Stripe payments and pay your employees and vendors. Accelerated transactions will improve your cash flow, making you less prone to taking out short-term loans with high interest rates.
Most banks do not provide enough money management and budgeting features. Many small business owners use multiple apps to get the experience and capabilities they need. Novo provides plenty of resources on its own and enables app integrations so you can view everything from the same dashboard.
Advantages of Using Novo as Your Business Banking Platform
Novo’s banking services provide numerous advantages that give you more choices and will make you feel safer with your business banking. Discover Novo’s advantages below.
No more waiting multiple days for your money to arrive. Revenue from your Stripe account arrives in your Novo business checking account much quicker, and you can also pay employees and vendors sooner. Novo Boost allows you to receive your Stripe payments 95% faster and free of charge. Easy transfers can mitigate cash flow concerns and reduce friction in your business.
Check and Cash Deposits
Novo helps business owners deposit their paper checks and cash into their bank accounts. You can use the Novo app to take pictures of the front and back of your check. Then, Novo will automatically move the funds from your check to your designated business bank account. You must endorse the back of the check for the mobile deposit to work.
Novo also gives business owners the flexibility to make cash deposits, but it requires an extra step. You have to buy a money order from a vendor like Walmart or the USPS. Then, you can deposit the money order in the same way you would deposit a check.
Fast, Easy Application
It doesn’t take long to get set up with Novo. You can complete the application online within a few minutes. Some banks have lengthy application processes that can take 1-2 business days. Novo has a simple application that only asks for a few basic details before you’re ready to go. The company guides you through every step of the way and can answer any of your questions along the way.
Quality Customer Support
Novo makes it easy to contact customer service. You can use the live chat feature in the Novo app or send an email to the team. Novo also has a help center that contains additional resources, including an FAQ for quick answers.
Quick Access to Capital
Novo lets small business owners borrow up to $75,000. Those funds can help business owners stay on top of operating costs and manage their long-term goals. You don’t have to wait long to get the capital that you need. Through Novo Funding, business owners can get extra funds in as little as 24 hours while only going through a soft credit pull.
No Hidden Fees
Many traditional banks hide their fees, which can quickly add up if you are not careful. They hide these fees in the terms and conditions, but you won’t have to worry about underhanded fees if you bank with Novo. Novo does not have any hidden fees, and they also reimburse all ATM fees. Your business needs capital to make investments and pay workers. It shouldn’t get taken by banks through secret fees. Novo doesn’t even have minimum balance requirements for their business checking accounts.
Unlimited ATM Fee Refunds
Online banks have different policies for ATMs. Some banks have vast ATM networks that offer fee-free transactions. If you use an ATM outside of the network, you usually end up with a fee. Novo offers a different experience for its account holders. Novo offers unlimited ATM fee refunds. You won’t have to worry about these expenses eating into your company’s profits.
Staying on top of your expenses and breaking them into categories can help business owners use their money more effectively. When you use a Novo debit card for your purchases, the fintech company will automatically categorize your company’s spending and provide an overview of your finances in one place.
FDIC insurance is essential for any bank or fintech company. If a bank does not have FDIC insurance, you should not even consider opening an account. FDIC insurance protects you in case the bank defaults. The FDIC insures up to $250,000 in your bank account. Middlesex Federal Savings’ status as an FDIC member acts as an extra layer of financial security.
Online banking lets you manage your finances while on the go. Many financial institutions offer online banking, but not all of them offer the seamless experience you’ll find with Novo. The fintech company makes it easy to manage invoices, payments, and other money management tools. You can withdraw money from any ATM and get your fees reimbursed by Novo. Making a deposit is as simple as taking a picture of your check or connecting a payment app to your Novo account (i.e., Stripe, PayPal, etc.).
Small Business Tools Integration
Most small business owners use several online tools to manage payments and grow their companies. Unfortunately, each of these resources has its separate login credentials and requires an open tab. Managing all of these tools at once can feel frustrating.
Novo uses integrations to put all of these tools in one dashboard. Novo has integration with numerous tools, such as Stripe, Square, Shopify, QuickBooks, and PayPal. The fintech company lets you connect tools that help with bookkeeping, accounting, sales monitoring, and other functionality. You won’t have to have a dozen tabs open to keep up with your business. Novo centralizes your small business tools into a single dashboard.
Virtual Debit Card
Novo will send you a physical debit card when you open an account. However, you don’t have to wait for the physical card to arrive. Novo lets you use a virtual debit card to make purchases, which you can access right from the app. Some business owners enjoy the convenience of virtual debit cards instead of having to bring a physical card with them wherever they go. You can freeze and unfreeze your Novo debit card at any time to protect it from hackers or suspicious purchases. You can also enjoy unlimited transactions with these cards.
Novo invoices allow you to send payment requests to customers, send reminders, and add your professional branding. Invoicing is a free feature for every Novo checking account that doesn’t involve any monthly fees.
Novo lets business owners send an unlimited number of free invoices. You can send these invoices straight from the Novo app and let your customers choose from several payment methods. Novo invoices offer support for Stripe, Square, and PayPal integrations. Processing fees may apply.
Partner Perks Solutions
Novo partners with many popular brands to offer discounts for customers. You can get discounts for online advertising, bookkeeping, accounting software, marketing platforms, and other resources. Novo has partnerships in place with QuickBooks, Gusto, Hubspot, Google, and other corporations.
Some of these partnerships are with smaller companies you may have not heard of yet. Browsing through Novo’s partners can help you discover new ways to optimize your company’s finances and reach new customers. Other business solutions are more widely known. These partnerships can help small business owners save thousands of dollars using tools they already know and discover new options.
Novo Reviews: What Novo Customers Are Saying About the Business Banking Platform
The Novo platform helps over 200,,000 business owners unlock their financial potential. Thousands of those business owners have left reviews across Apple’s App Store, the Google Play Store, and Trustpilot. Here are some of the reviews business owners have posted about Novo.
- The Reserves option is a great way to see what you’re putting aside for future taxes, work vehicle maintenance, etc. Easily shows how much “spending money” is available, so you don’t have to mentally keep track. Wish they offered a points-earning credit card! Support is super good at resolving complaints. Couldn’t ask for more from a free mobile business bank service. 9/29/22 Update: Still using it. Still good. They are making improvements and adding features on a regular basis. — Wendy Lambert (Google Play)
- Reserves option is a great way to see what you’re putting aside for future taxes, work vehicle maintenance, etc. Easily shows how much “spending money” is available, so you don’t have to mentally keep track. Wish they offered a points-earning credit card! Support is super good at resolving complaints. Couldn’t ask for more. 9/29/22 Update: Still using it. Still good. They are making improvements and adding features on a regular basis. — Kristine (Trustpilot)
- 100% Positive Experience (And they implement suggestions) I was an Azlo customer for a couple of years (with multiple accounts), but they suddenly shut down. This was a nightmare at the time, but I’m so glad I moved to Novo. I did a ton of research (my wife and I both own small businesses) before landing on Novo. Also, I made a couple of requests about invoicing… And they were actually implemented. Great experience so far. Highly recommend. — Keith (Google Play)
- Really happy with my business account so far! Transactions post quickly, invoices are super easy to send straight from the app, and it’s easy to link QB etc, to your account. You can generate a virtual debit card for one-time use. I am pleased so far. — Brandy Juarez (Google Play)
How to Open a Business Checking Account with Novo
A Novo business checking account provides many perks that emphasize speed. So, it’s no surprise that Novo has a simple process for opening a new account. Here’s how you can get started.
- Step 1: Visit Novo’s website or download the app
- Step 2: Click the Get Started button to begin the onboarding process
- Step 3: Provide your business email and password to create an account
- Step 4: Verify your email
- Step 5: Proceed to create an account with Novo
During the application process, you will have to provide personal information like your Social Security Number and personal ID. You will also have to provide information about your business. Novo guides you through the entire process and makes it as seamless as possible.