Novo is a fintech company that enables customers to create business checking bank accounts. It partners with Middlesex Federal Savings, F.A., an FDIC-insured bank. Over 175,000 small business owners use Novo for their business banking, and for good reasons. Novo has a suite of financial management tools that help your business grow. You can connect numerous apps to your Novo dashboard to simplify your bookkeeping, sales tracking, accounting, and other parts of your business. Shopify, Square, Stripe, and PayPal are some of the many available integrations. Novo is far more than a place for business owners to save on costs and manage their businesses. spending and savings account for business owners. The fintech company is a reliable banking solution for small business owners, freelancers, and startup founders.
The Miami-based fintech company provides business banking solutions to small business owners seeking to unlock their potential. Novo launched in 2016, led by founders Michael Rangel and Tyler McIntyre, to provide the most compelling banking experience possible. Novo strengthens business finances by providing innovative features and integrations. Small business owners using the fintech platform get access to financial data points that help them make better decisions. You can operate your business from the Novo dashboard instead of having over a dozen internet tabs open at the same time.
Novo has received plenty of press for its commitment to empowering small business owners. Forbes named the company one of The Fintech 50 2022 for innovation, and TechCrunch featured Novo after their team raised $90 million in funding. CNBC and American Bankers are some of the other media outlets that have featured the fintech company. Novo has also won several awards from companies like Barclays and Visa. Novo’s tools and resources aim to modernize small business banking by giving business owners, freelancers, and startup founders more capabilities.
What is the Novo Business Checking Account?
The Novo Business Checking Account lets you save and spend money for your business. The account’s quick transfers ensure your workers, vendors, and other partners get paid sooner. The emphasis on speed also helps with the money you receive. Since Novo is a verified Stripe partner, the fintech company can let you access revenue from Stripe up to 95% faster. They even provide $ 5,000 in fee-free processing for those incoming Stripe payouts.
Are Your Novo Business Checking Account Deposits FDIC-Insured?
You can work with many banks or fintech companies like Novo. However, it’s absolutely essential that they are members of the FDIC since your account will get insured for up to $250,000. FDIC membership should be a condition for working with a bank or fintech company as it provides greater peace of mind. Novo business checking accounts are FDIC-insured through Novo’s partnership with Middlesex Federal Savings.
How a Novo Business Checking Account Can Help Your Business
A Novo business checking account provides numerous advantages over the options you’ll find at banks and other fintech companies. Here’s the comprehensive list of features and perks you’ll get when you bank with Novo.
Manage Your Business Finances
Novo makes it easy to manage your company’s finances. Quick transfers and reduced wait times for Stripe payments reduce cash flow issues, which is one of the main reasons why many businesses fail. Creating a business checking account will also help separate your personal and business finances. Doing so can protect you from legal actions, simplify the tax season, help you track cash flow, and get more tax deductions.
When you transfer money through your Novo business checking account, you’ll also save on fees. While most banks charge a transaction fee for standard ACH transfers or mailed checks, Novo does not charge you for these transfers. The fintech company also doesn’t have monthly fees or minimum balance requirements. As a result, Novo combines effective business finance management with no hidden or monthly fees, a perk you won’t find at most financial institutions.
Need to bill a client, but you don’t want to log into yet another online tool to create that invoice? Novo lets you create and send personalized invoices to your clients. Novo does not charge any fees for creating and sending invoices. You can send as many as you want without getting charged.
Novo also syncs with PayPal, Square, and Stripe. You can use online tools to create invoices and have them integrate with Novo, or you can create invoices with Novo’s resources. In addition, Novo lets you add your company’s logo on every invoice.
You can pay suppliers straight from the Novo app, and the money will arrive to them sooner. Instead of having your suppliers wait a few business days for the transfer to go through, they can receive funds a few hours after you initiate the transfer. Delivering funds to suppliers quicker can strengthen your partnership and help your business grow faster.
You can also receive materials and other services faster, as some suppliers will only provide a service or deliver materials when the transfer gets fully processed. Any delay in receiving goods or services can hurt your company. Some business owners have to slow down while waiting for the goods to arrive. Business owners can avoid this issue by paying partners sooner. Novo’s infrastructure makes it possible.
You can receive payments from the Novo app, and the fintech company’s flexibility shines in this category. Novo has integrations with Stripe, Square, PayPal, and other apps. You can also accept ACH and check payments for your business. You have many options to receive payments from clients. You’ll feel comfortable using technology you know well while giving your clients more choices. Some business owners take out short-term loans while waiting for transfers to fully process. Novo protects you from that scenario.
Track Your Transactions
Monitoring your transactions can help you avoid overspending and more effectively allocate your capital. Having your transactions ready to go during tax season can save plenty of time and lead to more tax deductions. You can automatically sync transactions from your Novo account to your accounting software to make the tax season a little easier. Organizing your transactions can reveal insights about your company and increase efficiency. An automated system for inputting transactions into your accounting software will give you more time to contact new clients and complete projects.
Deposit Checks Easily
You don’t have to get in the car and drive to a bank to deposit your checks. Instead, Novo makes it as simple as taking a picture of your check through the Novo app. The funds will then show up in your Novo business checking account, ready for use in your business. Depositing checks this way will save you time and money. You won’t have to commute to your local bank, and you won’t have to spend money on transportation.
We already know how Novo simplifies deposits through its integrated tools and easier check deposits, but what about withdrawals? Novo is accepted at ATMs worldwide. You can withdraw your cash from any of these machines, and Novo will reimburse the fees. You won’t have to worry about ATM processor fees or out-of-network costs. Traditional banks may charge $3 or more for an out-of-network transaction, and if you rely on ATMs for cash, these fees can add up quickly. You can also use the Novo Debit Card anywhere you go. If you like to travel, the Novo Debit Card is up for the challenge.
What Other Features Does a Novo Business Checking Account Have?
We have already covered a lot of ground, but you’ll find additional perks in a Novo business checking account. Here’s what else you can expect.
Novo Virtual Card
You can access your Novo virtual card right away while you wait for your physical card to arrive in the mail. Getting your physical card provides another choice, but the Novo virtual card has several advantages. You can make transactions anywhere in the world with this card, and it comes with enhanced security features. Novo users can freeze and unfreeze their cards instantly, allowing business owners to protect their debit cards from unauthorized spending. You can connect the Novo virtual debit card to your Apple Wallet or Google Wallet for easier access. Making payments through your smartphone makes you less reliant on carrying a wallet around and possibly losing your physical debit card.
Many people dread tax season, and being unprepared can make it even worse. Allocating a percentage of every payment to your taxes will help, but not everyone remembers this tax strategy. Some people occasionally save up for taxes, but inconsistencies can still leave you scrambling to find funds before the bill’s due date. Again, Novo can come to the rescue through Novo Reserves.
Novo Reserves is a feature that lets you allocate a percentage of each payment to a specific expense category. Small business owners don’t have to think about these pesky details since you can have distributions happen automatically. You can allocate a small amount of each payment to a Novo Reserve for tax season, so the tax bill doesn’t catch you by surprise. Business owners can also reserve a percentage of every sale for business investments, savings, education, personal income, and other categories.
Categorizing your money minimizes the chances of overspending and accidentally dipping into the wrong funds. Business owners without this approach may find the tax season more stressful or not have enough money for a personal vacation or another objective. You can have up to 10 Novo Reserves tied to your account, distributing money across key expense categories and savings goals. The distributions run in the background, allowing you to focus on your small business.
Stripe, Square, and PayPal Integrations
Most businesses get comfortable with their payment software and other resources. They don’t want to change if the current solutions work just fine. Novo enables business banking that works with your favorite tools. Small business owners can integrate Stripe, Square, and PayPal with their Novo accounts. You won’t have to worry about learning a new business tool. Novo offers various integrations beyond those three resources to simplify other areas of your business.
Cash flow is the foundation of any small business. Any disruptions or delays to cash flow can hurt your company’s progress and potentially create hardships. Novo Boost lets you avoid cash flow crunches by moving your money faster. You won’t have to wait several days for your Stripe transactions to process and end up in your business checking account. Novo Boost lets you receive these funds up to 95% faster so you can deploy them into your business or increase your savings. You can receive funds in a few hours instead of a few days and connect with hundreds of apps.
Using Novo Boost also opens up special deals that will further strengthen your cash flow. For example, Novo users can get a 50% discount on Constant Contact for the first six months, a $500 Google Ads credit if they spend $500, 30% off the first six months of any QuickBooks Online package, and other perks. Accessing great resources at a lower cost will increase your savings. Then, you can either hold onto that money or make additional investments in your business.
Does Novo Offer Business Credit Cards?
Novo currently does not offer credit cards, but they may let members open credit cards in the future. The company is always looking to expand and offer new financial products and services based on user feedback. If you miss the rewards programs credit cards provide, you should look at the discounts Novo users can get on business tools and resources.
What Are the Requirements to Open a Business Checking Account with Novo?
You’ll need some basic documents to open a business checking account with Novo. You’ll need a signed copy of a personal ID document, a Social Security number, a U.S. address, and a mobile phone that uses a major U.S. carrier. You must be at least 18 years old to open a Novo account.
You’ll also need business documentation which depends on your company’s legal structure, and some variances may exist depending on which state you live in. If you did not file your business with a state, you could apply as a sole proprietor, which will save time. You’ll have to provide additional documents if your business is an LLC or another entity other than a sole proprietorship. Submitting everything correctly the first time will speed up your path to a Novo business checking account. If you don’t submit all of the documentation, Novo will ask for the missing documents. This scenario would slow down your path to an account, but Novo will work with you throughout the process.
Will Applying for a Novo Business Checking Account Affect Your Credit Score?
Applying for a Novo business checking account will not affect your credit score. The same holds true for the majority of fintech companies and financial institutions. Some banks may impose a soft credit pull which will not impact your score. Novo does not check your credit history when you apply for an account, and creating an account with them will not impact your score. The Novo debit card won’t influence your credit score either. New debit card openings and debit card activity do not get reported to the major credit bureaus.
How to Open a Novo Business Checking Account
A Novo business checking account can power up your finances and help your company unlock its potential. The process for creating a business checking account is simple. You can visit Novo’s website or download the mobile app to create a business checking account.
Novo will ask for basic details, such as your name, email address, phone number, and personal identification. Novo will walk you through the process so you provide the right documentation.