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Novo Funding Review

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Patrick Sather
Oct. 05, 2023
3 min read
Patrick Sather
Novo Summary
Novo Funding offers working capital to small businesses in the form of merchant cash advances. It provides up to $75,000 to qualifying businesses, and each draw comes with a standard six-month term and its own factor rate. You can apply online in just a few minutes through the Novo app and get approval in under 24 hours. Novo Funding charges no pre-payment or origination fees and charges competitive factor rates, starting at 1.5%.


  • Revolving access to available funds
  • Competitive factor rates
  • No pre-payment or origination fees


  • Funding limited to merchant cash advances

Novo at a glance

Editorial score

Online experience

Has learning resources, access to rates, mobile app

Customer services and support

Multiple ways of reaching lender, wide range of hours

Variety of loan types

Niche lender

Loan amount range

Loan amount up to $75K


Loans available to most credit types, revenue levels, and businesses

Novo Novo Visit Site


Founded in 2018, Novo is an online fintech banking platform designed for small businesses, freelancers, and startups. Together with its partner bank, Middlesex Federal Savings, Novo offers a suite of banking solutions, including business checking, invoicing, accounting and payroll integrations. It also offers partner perks from companies such as Stripe, Gusto, and Keeper that can save your business time and money.

In 2022, Novo launched Novo Funding LLC, a subsidiary company that specializes in providing working capital to small businesses. With Novo Funding, existing Novo customers can get access to up to $75,000 via a merchant cash advance. Novo Funding charges no origination or pre-payment fees and offers a standard six-month revolving term on draws to businesses that qualify for funding.

Why Novo Funding Is Good For Your Business

If you’re an existing Novo business checking account customer and need short-term financing, then Novo Funding may be right for you. Whether you need help with hiring, inventory, marketing, or other business expenses, Novo Funding can provide your business with the capital you need to get your finances back on track. 

Most traditional lenders have stringent requirements to qualify for a business loan, making it difficult for small businesses to find short-term financing. Novo Funding exists to fill this gap by granting you access to fast, flexible working capital. Its low credit score and monthly revenue requirements mean that businesses of all shapes and sizes may qualify for funding.

Funding Features

Currently, Novo Funding only offers working capital to small businesses in the form of merchant cash advances. Unlike a traditional small business loan, a merchant cash advance from Novo Funding allows you to take out a revolving line of capital. The amount you can withdraw is based on your monthly business revenue and is capped at $75,000.

Each draw you take from your available funds with Novo Funding has its own six-month repayment term and factor rate. Your factor rate multiplied by your draw represents the total amount you’ll need to pay back on your funding. Depending on your rate, withdrawal amount, and repayment time, your factor rate will start at 1.5%.

  • Loans offered: Merchant cash advance

  • Maximum funding amount: $75,000

  • Term length: Six months

  • Factor rate: Start at 1.5%

Application Process

It’s easy to get started with Novo Funding. You can complete the application in less than 10 minutes, either online or through the Novo mobile app. 

You’ll need to provide your personal information, such as your name, address, and social security number, as well as your business information. You may also need to provide specific documentation such as Articles of Incorporation. 

Novo will review your application within 24 hours. Once you receive approval, you’ll instantly have access to your available funds balance via your Novo account.

Be advised that Novo Funding is currently only available for existing businesses with at least six months of banking activity. Additionally, your business must have monthly revenue of at least $500. 

How Much Can You Draw?

Upon approval, you can withdraw from your available funds balance as needed. The amount of working capital that Novo makes available to your business varies depending on your monthly revenue but is capped at $75,000. 

  • Minimum monthly revenue: $500

  • Maximum funding amount: $75,000

Repayment Terms

As a revolving bucket of capital, your available funds balance with Novo Funding is there when you need it. You only pay fees on the funds you draw, and Novo Funding charges no pre-payment or origination fees. When you make repayments, it tops up your available funds balance, and additional funds become available. 

Each draw that you make has its own six-month repayment period and rate. That said, you can always repay your advanced funds early to reduce financing costs—without any pre-payment fee. Factor rates start at 1.5%.

How Safe Is It?

Novo Funding employs bank-grade encryption to protect your personal and financial information, and its dedicated fraud team monitors your account 24/7.  

Novo also uses two-factor authentication for enhanced security.  When you log in to your account, Novo will send a code in an SMS text message to your phone. Alternatively, you can choose to receive your code via email, although this option also requires you to answer two security questions before receiving the code. 

Help and Support

Support is available Monday-Friday, 9am-5pm (ET). Alternatively, you can consult the help center on Novo’s website to get answers to questions about account maintenance, security, and integrations. 



If you have a small business in need of funding but don’t qualify for a traditional small business loan then Novo Funding may be right for you. It offers merchant cash advances with competitive factor rates and charges no pre-payment or origination fees. You can apply online in just a few minutes and get the funding that you need for your business to thrive. 

Physical Address

Novo Funding LLC, PO Box 311092, Miami, FL 33231

Novo Novo Visit Site


This review was created based on information gathered from Novo’s website, third-party reviews, and conversations with Novo customer service agents. 


Merchant Cash Advance products and services are offered by Novo Funding LLC (“Novo Funding”), a wholly owned subsidiary of Novo. Merchant Cash Advances require a Novo checking account.

Patrick Sather
Written by
Patrick Sather
Patrick Sather is an award-winning personal finance writer and licensed broker who has worked for some of the largest financial firms in the United States, including TD Ameritrade and Pacific Life. A graduate of the University of Nebraska in both Economics and International Trade and English, his articles on life's most common financial decisions and quandaries are straightforward, practical, and always easy to understand.
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