Novo Assessment – Small-Enterprise Financial institution With Free Checking Accounts

One of many first issues you need to do after formally incorporating your enterprise is open a enterprise checking account. However the prospect may be overwhelming as a result of there’s a lot selection and never a lot transparency within the house. Once I ran my very own micro-business again within the day, I evaluated greater than a dozen monetary companies suppliers for freelancers and really small companies earlier than selecting an answer — which, to this present day, I’m nonetheless unsure was the proper name.

I want Novo had been round again then. Novo provides a free enterprise checking account by means of Middlesex Federal Financial savings F.A., member FDIC, and it’s one of many few enterprise monetary companies suppliers that really appears to care concerning the entrepreneurs it serves. (Harsh, positive, however honest — take it from a former entrepreneur.)

Novo provides only one enterprise checking account, but it surely’s an excellent one. It has a great deal of options you’ll really use and no recurring or hidden charges, ever. See the way it compares to conventional enterprise financial institution accounts and resolve whether or not it’s a very good match to your enterprise.

What Is Novo?

Novo is a fintech that gives a small-business checking account by means of Middlesex Federal Financial savings F.A., member FDIC. It’s not itself a financial institution — that’s why it companions with Middlesex, an precise financial institution.

However Novo does supply one in all solely a handful of free checking accounts for enterprise customers. In contrast to most enterprise monetary companies suppliers, it doesn’t cost a month-to-month upkeep payment or charges for on a regular basis actions like ATM withdrawals. Novo additionally doesn’t impose limits on deposits, so it’s applicable each for small companies that plan to remain small and small companies that plan to develop rapidly.

Novo serves about 175,000 companies and counting. Nonetheless, it’s not a full-service enterprise fintech — but — as a result of it doesn’t supply any loans, bank cards, financial savings accounts, or treasury administration companies. 

How Novo Stacks Up

Novo (by means of Middlesex Federal Financial savings F.A.) isn’t the one enterprise checking account supplier round. BankProv is one other enterprise financial institution that focuses on smaller enterprises, although its options and companies appear to be a greater match for bigger, extra established enterprises.

What Units Novo Aside?

Novo just isn’t your typical enterprise fintech. It’s higher. Which suggests there’s lots to set it aside from extra abnormal rivals.

Three factors of distinction actually stand out although. See how every improves the cash administration expertise with Novo.

• Limitless Test Deposits and No U.S. Transaction Limits. Novo is uncommon amongst its friends for imposing no numeric limits on examine deposits or U.S. transactions. You don’t have to fret about sticking to a sure variety of deposits or debit card swipes every month, which is nice if you happen to make numerous gross sales or small purchases for your enterprise.
• Limitless ATM Reimbursements. Novo doesn’t cost ATM withdrawal charges. Even higher, it doesn’t permit different banks and third-party ATM operators to cost them both. In the event you do get hit with an ATM withdrawal in your Novo debit card, Novo reimburses it, no questions requested.
• No Month-to-month Charges or Hidden Charges. Novo doesn’t cost month-to-month upkeep charges or annual charges. It additionally doesn’t have any hidden charges. In the event you use Novo as supposed, you shouldn’t incur any out of pocket bills — which is sort of unprecedented on this business.

Key Options of Novo

Novo has loads of options that make it enticing to small, rising companies. The widespread theme right here — which, in my expertise, is uncommon in a business-facing fintech — is a deal with affordability, ease of use, and empowerment. Many rivals appear extra desirous about discovering methods to restrict their customers.

Free Mastercard Debit Card & Digital Card

Novo comes with a free Mastercard debit card accepted by hundreds of thousands of on-line and in-person retailers. That in and of itself isn’t notable — most enterprise financial institution accounts include a free debit card.

What’s notable is the truth that you get a Novo digital card quantity as quickly as your account is accepted and your opening deposit hits. Meaning you’ve gotten speedy entry to your deposited funds and may instantly begin making enterprise purchases. You don’t have to attend days to your card to reach within the mail, like most conventional enterprise banks require.

Plus, your Novo debit card integrates with Google Pay and Apple Pay. No must swipe your card on the level of sale the place these choices are accepted or enter your card quantity each time it’s essential use it on-line.

Novo Reserves

Reserves are principally working capital budgets that deliver order (and pace) to your enterprise budgeting processes. 

You’ll be able to create as much as 10 Reserves: one for estimated taxes, one other for insurance coverage, one other for tools financing funds, and so forth. Allocate a portion of future revenues and set particular bills to be paid out from every, automating your overhead and liberating up your accounting group’s time for extra necessary work. 

If your enterprise has just some fundamental expense classes, Reserves can substitute a conventional bookkeeping setup and will even get rid of the necessity for a conventional funds. And it’s completely free, that means it prices infinitely lower than a paid accounting system.

Exterior App Integrations

Novo integrates seamlessly with greater than a dozen exterior apps. The lineup is all the time altering however at the moment consists of a few of the largest names in digital gross sales, fee processing, and accounting:

• Amazon
• Etsy
• Shopify
• Stripe
• Sq.
• QuickBooks
• WooCommerce
• PayPal
• Xero

The Stripe integration is especially helpful for companies that use Stripe to make and course of funds. Novo is a Stripe Verified Companion, so the combination is completely seamless from the person’s perspective — you’ll be able to see your Stripe balances proper in your Novo account and course of funds as much as 95% sooner. 

Plus, you get $20,000 in fee-free fee processing if you join Stripe by means of Novo.

Novo Increase

Presently in open beta mode, Novo Increase offers you entry to your cash a lot sooner than anticipated — in hours somewhat than days. That’s tremendous helpful when your enterprise is in progress mode and also you’re utilizing at the moment’s revenues to pay payments coming due tomorrow.

Increase is at the moment solely obtainable for funds processed by means of Stripe, however that would change sooner or later.

Cellular Test Deposit

Excellent news for companies that favor (or haven’t any selection however) to do issues the old school means: Novo permits limitless cell examine deposits by means of the cell app. Simply signal and endorse the again of the examine (see under) and full the deposit with just some faucets within the app. 

Exterior Transfers

Novo permits seamless inbound and outbound transfers with no minimums and no numeric transaction limits throughout the U.S. (This is applicable to debit card transactions as effectively.) There aren’t any switch charges for ACH transfers and paper examine invoice funds, and also you make worldwide transfers that clear inside minutes utilizing Clever (charges could apply).

Invoicing

Novo has a built-in bill generator that may nearly actually get rid of the necessity for a standalone invoicing software. Use it to construct and ship professional-looking, personalized invoices to shoppers and prospects. 

If you would like — and it’s not clear why you wouldn’t — you’ll be able to combine PayPal, Stripe, and/or Sq. into your Novo invoices in order that your shoppers pays you with just a few clicks on their finish. 

Third-Occasion Partnerships and Offers

Along with the third events already talked about, Novo companions with some notable exterior distributors to ship unique perks and discounted companies to its customers. Take full benefit of those partnerships and you may unlock a number of thousand {dollars} in worth:

• 50% low cost in your first six months with Fixed Contact (electronic mail advertising and buyer relationship administration)
• 30% off your first yr’s subscription with HubSpot, then 10% subsequent years (digital advertising and analytics instruments)
• Six months free on any Zendesk license, as much as 100 seats (customer support instruments)
• $500 in Google Adverts credit if you spend $500
• $300 in Google Cloud credit
• 30% low cost on the primary six months of any QuickBooks on-line subscription

There are extra the place these got here from. My recommendation: Reap the benefits of any alternatives that even remotely apply to your enterprise. In the event you’re not seeing the worth, you’ll be able to all the time cancel.

Benefits of Novo

If it’s not clear by now, Novo has loads of upsides. These are significantly useful for rising small companies.

• Open an Account in About 10 Minutes. Novo has a super-simple, all-online account software course of. You’ll be able to open an account in about 10 minutes right here. Conventional banks can take weeks.
• Constructed-in Budgeting With Reserves. Novo’s Reserves characteristic is a fundamental budgeting and expense administration software that would substitute your exterior accounting software program and perhaps even your bookkeeper. Discuss financial savings.
• A number of Helpful Third-Occasion Integrations. Novo integrates with a bunch of super-useful third-party apps, together with fee powerhouses like Stripe and Sq.. No extra time-consuming cash actions or income administration.
• Partnerships and Reductions Price 1000’s. Novo’s third-party partnerships are price 1000’s when absolutely exploited, and so they’re really helpful. 
• Bill Shoppers and Acquire Fee Proper From the App. Novo’s built-in invoicing and fee instruments make it straightforward to request and obtain cash from shoppers in your phrases. And its professional-looking invoices assist your enterprise stand out from the competitors.
• Speedy Entry to a Digital Card. No want to attend to your Novo debit card to reach within the mail to begin spending out of your Novo account. You’ll get a digital debit card quantity as quickly as your account is accepted.
• Limitless Cellular Test Deposits. In the event you’re drowning in checks, Novo has you lined. There’s no restrict to the variety of cell examine deposits you can also make into your Novo account and no charges for executing them. 
• No Numeric Limits on Deposits or U.S. Transactions. Novo additionally doesn’t impose numeric limits on deposits or U.S. transactions. You may make as many small or not-so-small deposits as you’d like into your account, and swipe your debit card as a lot as wanted with U.S. retailers.
• Nearly No Charges. Novo doesn’t cost month-to-month charges, transaction charges, assertion charges, or some other hidden junk charges. As one of many few remaining enterprise financial institution accounts that’s really free, and that places it head and shoulders about its rivals.

Disadvantages of Novo

Novo isn’t excellent. Although it doesn’t have many downsides, these are price contemplating earlier than making use of for an account.

• No Curiosity-Bearing Financial savings Account. Novo’s sole product (for now) is a checking account. In the event you’re on the lookout for an interest-bearing financial savings account for capital you don’t want this yr, you received’t discover it right here — although Reserves is a pleasant intermediate choice for month-to-month and even annual budgeting.
• No Small-Enterprise Loans or Credit score Traces. Novo doesn’t supply enterprise bank cards or small enterprise loans. It may sooner or later, however for now, it’s essential look elsewhere for financing.
• No Account Opening Bonus on the Second. Novo doesn’t at the moment have any enterprise checking account promotions. These bonus provides have a tendency to come back and go, so that would change sooner or later too.

Is Novo Legit?

Sure, Novo is professional. It provides enterprise banking companies by means of Middlesex Federal Financial savings F.A., an FDIC-insured financial institution with an extended observe report of stability and good customer support.

Greater than 175,000 companies belief Novo with their hard-earned cash. It has tons of of five-star opinions on Trustpilot, a well-liked and trusted shopper safety useful resource. The Novo app is rated 4.8 out of 5 stars within the Apple App Retailer and 4.4 out of 5 stars on Google Play, each as of early October 2022.

And you may relaxation assured that your cash is safe with Novo. On prime of Middlesex Federal Financial savings’ FDIC insurance coverage, your funds are protected by bank-grade encryption, Novo’s in-house safety group, digital bank cards that preserve your precise debit card quantity from falling into the improper fingers, and EMV/chip card safety.

Alternate options to Contemplate

In the event you’re on the lookout for a small-business checking account that doesn’t maintain you again, Novo is arguably your finest guess. In the event you’re on the lookout for a juicy account opening bonus, enterprise financing choices, or curiosity on long-term financial savings, contemplate these options as an alternative.

Last Phrase

Novo is among the finest financial institution accounts for small enterprise homeowners and freelancers for a number of causes. 

First and maybe most necessary, Novo is actually free. That is uncommon amongst small-business monetary companies suppliers, and getting rarer. Novo doesn’t cost recurring upkeep charges and has no hidden charges, so you should use it with out worrying about junk expenses consuming away at your capital.

Novo additionally has comparatively few limits. Notably, it doesn’t restrict deposits in any means, which is principally unheard-of on this class. This makes Novo nice for rising companies.

Lastly, Novo may be very user-friendly and boasts a ton of options your enterprise can really use. From over a dozen third-party app integrations, to digital playing cards, to invoicing and cell examine deposits proper within the app, Novo makes enterprise banking simpler.

Does that imply Novo is for positive your best option for your enterprise’s monetary wants? Not essentially — good options exist. However Novo is best than your typical upstart enterprise fintech.