gabrielNovo is a digital banking technology firm perfect for entrepreneurs running small businesses or side hustles. The company helps you distinguish between personal and business income while offering a dependable banking experience. Through its partnership with Middlesex Federal Savings F.A., Novo provides one of the top business checking accounts online.
Around 61% of internet users conduct their banking online. If you’re generating passive income from your side hustle or small business and are considering opening a small business checking account, Novo could be a good fit. However, read this in-depth Novo review to determine if it meets your needs.
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Novo is a FinTech company offering digital checking accounts tailored for small businesses. With this service, you can effortlessly open a business account, deposit income from your side hustle, and leverage banking data for bookkeeping and reporting related to cash flow and expenses.
Novo excels at making it easy to open a small business checking account without long lines or extensive paperwork. Novo’s services are also cost-effective, featuring no monthly fees or minimum balance requirements.
Pros
Cons
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Novo is an independent FinTech firm that provides online financial services in partnership with Middlesex Federal Savings F.A. Users benefit from secure digital banking with the safeguards of a traditional bank and FDIC insurance.
The Novo platform grants access to a comprehensive set of digital tools aimed at helping entrepreneurs, freelancers, and small business owners handle their daily banking tasks. Setting up a Novo account is simple and quick, taking just ten minutes to access features like fee-free banking, complimentary ACH transfers, and unlimited invoicing.
You don’t need a perfect credit score to open a Novo business checking account. The company doesn’t review credit histories since it doesn’t offer credit lines or lending services. If you need quick, straightforward access to capital with a business line of credit, consider credit unions for business banking accounts.
You can open a small business bank account for your LLC, sole proprietorship, partnership, or corporation. Exceptions include companies in money services, gambling, cannabis, crowdfunding, or cryptocurrencies.
While opening a Novo account is relatively straightforward and rapid, you must provide essential business documentation. Additional eligibility requirements include:
Novo offers digital banking services, including a free checking account, invoicing tools, and smooth integrations with third-party business tools that simplify financial processes. Due to the absence of key features like cash deposits, a Novo account is best suited for entrepreneurs with small businesses or side hustles primarily operating online.
Novo provides cost-effective digital business banking. Beyond offering fee-free business banking accounts with no monthly maintenance fees, there are no fees associated with ACH transactions or wire transfers. Novo fully refunds all ATM fees, whether local or international. Additional benefits include free:
Features
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The primary fees users encounter include a $50 opening deposit to access the platform’s features and $27 for insufficient funds or reversing uncollected funds.
To make a cash deposit using the platform’s mobile check deposit feature, you must purchase money orders from approved vendors. It’s also important to be aware of the following transaction limits and expected processing times.
Novo provides a solid array of features and tools for its business checking accounts, benefiting entrepreneurs, freelancers, and small business owners. Beyond a quick and straightforward application process, here are additional features users appreciate on the platform.
Novo offers fee-free banking, which means freelancers, solo entrepreneurs, and small businesses can avoid recurring account maintenance fees. The only expense is a $50 initial deposit.
A Novo online business checking account empowers users to manage their business finances from anywhere. By downloading the mobile app on your iOS or Android device, you can access a suite of online and mobile banking features at your fingertips.
Novo’s free ACH transfers from other banks simplify funding your Novo account or accessing your funds. While Novo doesn’t accept cash deposits, you can easily deposit a physical check by snapping a photo. You can fund your account by integrating it with Stripe to receive credit and debit card payments from clients.
Another way to fund your account is by purchasing and depositing a money order using the platform’s mobile check deposit feature. Some of Novo’s approved money order vendors include grocery stores, USPS, and Walmart.
Novo offers a free debit card, ensuring a full refund of ATM withdrawal fees. You can also use the Novo Virtual Card to pay vendors via mailed checks, ACH transfers, or wire transfers. The free transfers are also handy for paying yourself from your side hustle by occasionally moving funds to your personal account.
The Novo platform lets you create, send, and manage unlimited invoices from your checking account. You can also accept invoices from customers via Stripe or ACH transfers.
With Novo reserves, you can establish up to 5 reserves to set aside funds for specific expenses like payroll or taxes. This helps you plan, set multiple budgets and business goals, and transfer your statements to bookkeeping software like QuickBooks.
Novo enhances flexibility by offering seamless integrations with third-party software. After installing the mobile app on Android or iOS, you can link your account with various digital tools, including Zapier. This connection enables access to thousands of business apps that automate diverse processes.
You can integrate your Novo business checking account with approximately 15 popular apps. For eCommerce needs, the platform supports integrations with Amazon, Shopify, Etsy, and WooCommerce. It also connects directly with accounting software like Xero and QuickBooks. You can link to POS partners such as Square and Stripe.
Having a Novo business checking account qualifies you for discounts on software from the platform’s partners. For example, you receive fee-free credit card processing up to $20,000 with Stripe. Other Novo partners providing attractive discounts include Snapchat, HubSpot, QuickBooks, and Gusto.
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Novo is a platform where freelancers, solo entrepreneurs, and small businesses can establish business checking accounts for straightforward and free transactions through ACH transfers or integrations with TransferWise, Slack, and Stripe.
However, the platform may not be the best digital banking solution for some ventures, personal consumers, or larger enterprises.
Consider the following alternatives if the Novo business checking account does not align with your business needs or goals.
Novo doesn’t have its own ATM network, but you can use any ATM to withdraw cash with your Novo debit card. The company will reimburse all ATM fees, including those from international ATMs. However, ATM withdrawals are capped at $1,000 per day.
To deposit funds into your Novo business account, you can receive ACH transfers from your personal bank account or deposit a physical check by taking a photo. Another option is to accept credit and debit card payments from clients via invoices. You can also deposit cash by purchasing a money order from an approved vendor using the check deposit feature.
Novo has fixed limits for check deposits, ATM withdrawals, ACH transfers, and POS purchases. However, you can log into the app and request adjustments to the limits for mailed checks, check deposits, and ACH push limits.
As digital banking users are projected to surpass 65% of the U.S. population, the market is rapidly filling with digital business checking account platforms. Our thorough review of Novo helps determine if this relatively new FinTech company has the features you need to manage your business finances effectively.
Novo is a strong contender due to its affordability, integrations, and offerings tailored to small businesses. However, alternatives like Capital One and Kabbage are appealing to larger enterprises that can handle additional fees for enhanced functionality.
If you’re considering opening a business account, check out our comprehensive reviews of Bank of America, NBKC Bank, and Chase Bank. They provide insights into the advantages, disadvantages, and other options.
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