Novo, the “powerfully” simple financial platform for small businesses, announced the launch of Novo Funding, “offering small businesses a fast and flexible way to access working capital.”
The company has also “secured a $125 million facility from Victory Park Capital (VPC), which will be used to provide working capital through Novo Funding.”
Michael Rangel, founder and CEO of Novo, said:
“When a small business owner wants to invest in their business growth or simply needs additional funding to cover an upcoming payroll cycle, they have incredibly limited options for accessing capital. Some use credit cards with exorbitant interest rates, while others attempt to go through a weeks- or months-long application process with a traditional lender and are not able to access the capital until long after they need it. Novo Funding is built to support small business owners’ short-term financial needs and long-term ambitions with a seamless working capital experience.”
Novo Funding offers small businesses a range of benefits, including:
- Streamlined application process: The Novo Funding application can be completed in under 10 minutes, and Novo will complete its review within 24 hours of receiving the application.
- Instant access to funds: Once approved, the small business will have instant access to up to $75,000 of working capital via their Novo account.
- Autonomy over fund deployment: Small businesses that receive funding have full discretion over how to use the working capital, from purchasing new equipment to investing in marketing.
- Only pay for the funds accessed: Small businesses can draw any amount of funds from their limit, and repayments replenish their available funding.
- Straightforward repayment: Novo provides a clear transfer schedule outlining each repayment, with standard repayment of six months per draw.
Kevin Phillips, EVP of Credit at Novo, said:
“After completing a pilot of Novo Funding in which thousands of small business owners accessed more than $35 million, we heard time and again how Novo Funding was by far the best option for accessing capital. There’s simply no other small business working capital product on the market that combines the speed and simplicity of Novo Funding.”
Jason Brown, Partner at VPC, said:
“Small businesses represent a significant segment of the U.S. economy, and Novo has created a user-friendly product to alleviate a frequent pain point for them. Michael and the Novo team have thoughtfully expanded their offerings to meet the financial needs of small business owners, and we are pleased to be partnering with them to support the new Novo Funding product.”
Novo Funding is the latest in “a series of offerings the company has recently introduced to help small business owners improve their cash flow.”
This year, Novo has launched “a new small business debit card with a range of capabilities for transaction monitoring, completed a Gusto integration for embedded payroll visibility, and announced enhancements to Novo Invoices to help small business owners receive payments faster.”
Novo Funding is available “to small businesses that have been operational for at least six months and have at least six months of business checking account transaction history.”