Digital Bank Novo Launches Working Capital Product for SMEs
(1 August 2023 - United States) Novo, a provider of digital-only banking services for US small businesses, has secured a $125 million facility for the launch of a working capital product.
Victory Park Capital has provided the facility to back Novo Funding, offering small firms with instant access to up to $75,000 of working capital via their Novo account.
The application can be completed in under 10 minutes, with a review completed within 24 hours. Firms can use the money how they want and only pay for the funds accessed, with a standard repayment of six months per draw.
The product comes shortly after Novo launched a small business debit card with a range of capabilities for transaction monitoring, completed a Gusto integration for embedded payroll visibility, and boosted its invoice tool to help small business owners receive payments faster.
Michael Rangel, CEO of Novo, says: "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."
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