When it comes to banking for small businesses, you have a wide range of financial institutions to choose from. Among the endless list of options, Novo stands out as a great solution for small business banking if you’re in the market.
Take a moment to explore a few of the advantages of banking through the Novo platform and see if it’s a good fit for your business.
What Is Novo?
Novo is a tech company devoted to helping customers take control of their financial data through convenient online banking solutions. The company has developed a user-friendly banking platform specifically for businesses.
The company was established in 2016 and was recently recognized as the “Best Digital Banking Platform” for 2023. The platform was developed with small business owners in mind. Novo has already helped over 200,000 customers save on banking by avoiding monthly charges and hidden fees.
Novo is not owned or operated by a bank, but partners with Middlesex Federal Savings, which is a federally insured bank based in Massachusetts. As a financial technology (fintech) company, Novo develops software and technologies for the banking sector, such as small business online banking.
Here is a quick look at the main features of Novo online banking:
FDIC insured, Bank-grade encryption, Online account summary, Routing number
Using Novo online banking is much like managing a standard checking account with any financial institution. However, all transactions and inquiries are completed online or through a mobile app, instead of in person at a local bank. You also receive an account number & routing number, allowing you to complete ECH (electronic check) transfers.
Advantages of Choosing Novo for Small Business Banking
As an online banking platform, Novo gives you a convenient way to check your accounts. You can view your balance at any time through the website portal or mobile app.
Some of the advantages of choosing Novo specifically over other banking options include:
Novo hopes to revolutionize small business banking. Here is a closer look at each of the ways that the company aims to make banking easier.
No Minimum Balances or Monthly Charges
One of the main advantages of Novo is the lack of charges, including no monthly charges for not keeping a certain minimum balance. While many banks require you to always hold $500 or $1000 in your account to avoid paying a fee, Novo has no minimum balance.
Novo also allows you to send free ACH transfers and mailed checks. You can also complete incoming wires with no additional charges. Direct international payments are also an option. There are no hidden fees for any of these transactions.
Automate Cash Allocation
As a fintech product, Novo includes many features not available through most traditional banking solutions, including the option to automatically allocate new funds.
For example, Novo allows you to create separate reserves, such as separate reserves for taxes, operating expenses, and profit. After creating the reserves, you can automatically distribute a percentage of all incoming funds to each reserve.
Budgeting your business finances is easier thanks to this simple feature. You can automatically set money aside for taxes or expenses, allowing you to instantly see how much available balance you have left.
Easily Create and Manage Invoices
Novo allows you to send unlimited invoices directly from your account. You have flexible options, including the ability to send one-time or recurring invoices.
Your Novo account also integrates with other payment systems and eCommerce platforms. You can integrate your banking account with Stripe, PayPal, Etsy, Shopify, and dozens of other apps. If you use Stripe, you can take advantage of “Novo Boos” to receive your payments up to 95% faster without any extra charges.
Instantly Freeze or Unfreeze Cards
After signing into your Novo account, you can quickly freeze or unfreeze your card. The risk of identity theft and credit card fraud continues to grow, increasing the need for secure banking.
Your Novo account gives you access to a virtual debit card. You can use the virtual debit card on any online platform or payment portal that accepts major credit cards and debit cards. Your virtual card cannot be physically stolen. However, if you suspect suspicious activity on your account, you may instantly freeze the card and associated account to prevent any further transactions.
Enjoy Access to Exclusive Savings
As a Novo customer, you will gain access to exclusive “partner perks”. The perks include savings on thousands of the most popular digital tools for small business owners.
With Stripe, you can save up to $5,000 in waived processing fees. Novo also offers thousands of dollars in savings on subscriptions to useful services, such as Gusto.
Convenient Money Management
The goal of Novo small business banking is to help make it easier to manage your finances. You can access your account through the Novo website or mobile app, which is available for download on iOS and Android devices.
The website and mobile app give you an all-in-one source for viewing your business accounts, so you can analyze funds, manage invoices, and deal with all your banking needs quickly and efficiently.
Reliable Customer Support From Real People
Novo’s customer support is always available when you need help with your account. You can submit an inquiry through the mobile app, website, email, or phone. Novo recommends that you use the app or send an email for the fastest response to your issue.
No matter the problem, you can expect to be connected to a real person instead of a chatbot. All questions are addressed by real customer service representatives in the shortest time possible so you can get back to your day.
Access to Business Structure Filings
Do you still need to officially establish your business as a nonprofit, LLC, or corporation? Novo can help. Your account provides access to 10% savings on business filings completed through Novo and a partnership with LegalZoom.
Using this option can help ensure that you properly file the necessary forms and fulfill your tax responsibilities. You can also receive help determining which type of business structure best fits your needs.
Add Users to Your Banking Account
As a business owner, you may need to grant specific individuals access to your banking information. With Novo, you can add users to your account.
For example, you can add your bookkeeper, accountant, office manager, investor, or other member of your team. Each user can log in and view account details, such as available funds and past transactions. They can also use the virtual card to complete transactions on your behalf.
Last Thoughts on Novo Small Business Banking
Novo offers small business banking solutions through its partnership with Middlesex Federal Savings. The Novo platform provides all the features that you expect from a bank account, including federally insured savings. However, you also avoid any fees.
Novo does not charge any monthly fees or require a minimum balance. You also gain access to a variety of useful perks, including the ability to instantly freeze and unfreeze cards online. You manage everything from a single account, send invoices, and automatically distribute your money between different sub-accounts.
The bottom line is that Novo is perfect for all types of business owners, from solopreneurs just getting started to those with thriving businesses looking for an alternative to other banking options. If you want to simplify the way you manage your money, Novo may be the right fit.
Stephanie is the Marketing Director at Talkroute and has been featured in Forbes, Inc, and Entrepreneur as a leading authority on business and telecommunications.
Stephanie is also the chief editor and contributing author for the Talkroute blog helping more than 100k entrepreneurs to start, run, and grow their businesses.