Novo Funding

Best for: Small businesses that have banked with Novo for at least six months and want a small, revolving cash advance with a soft credit check and a predictable monthly payment.

Not for: Anyone who doesn't hold a Novo checking account, needs more than a few thousand dollars with certainty, or wants payments that fall when sales fall. Payments are fixed monthly amounts, not a share of revenue.

Lender List verdict: Novo Funding is a convenient, low-paperwork advance for existing Novo customers, with a published starting price and a six-month payback that keeps total cost contained. The catch: only the starting rate is public, the maximum is unclear ($75,000 per Novo, $10,000 per Finder in October 2026), and our 1.5%-a-month example still works out to about 30% APR.

Novo Funding at a glance

Novo Funding is a revolving merchant cash advance of up to $75,000 (Finder reports $10,000 in 2026) for Novo banking customers, priced from 1.5% a month.

What is Novo Funding?

Novo Funding is the merchant cash advance arm of Novo, the online small-business banking platform, offered through its wholly owned subsidiary Novo Funding LLC in New York. Novo Platform Inc. was founded in 2016, is based in Miami, and is a fintech rather than a bank; its checking accounts are held at Middlesex Federal Savings, which plays no part in the advance.

Novo launched the product on August 1, 2023, backed by a $125 million credit facility from Victory Park Capital, after a pilot in which thousands of customers drew more than $35 million. Novo Funding LLC appeared on Virginia's register of sales-based financing providers in June 2024.

How the Novo Funding merchant cash advance works

Novo Funding works like a small revolving credit line: you get an approved limit, draw what you need, and repay each draw over six months.

• Draws: Take any amount up to your limit; repaying a draw, early or on schedule, frees that amount up again.
• Repayment: A set schedule of transfers from your Novo account; Finder and United Capital Source both describe these as fixed monthly payments.
• Term: Six months per draw is the standard.
• Speed: The application takes under 10 minutes, Novo aims to decide within 24 hours, and approved money lands in your Novo balance at once.
• Access: Finder reports you need a preapproval offer before you can apply.

Novo Funding rates and fees: what it really costs

Novo Funding prices each draw with a monthly factor rate that starts at 1.5%, and you pay only on the money you actually draw. Novo does not publish its highest rate.

• Charged: the factor-rate fee on each draw
• Not charged: origination or prepayment fees, per United Capital Source
• Not published: the maximum factor rate, the holdback or payment formula, any late or returned-payment fee, and whether paying early reduces the fee

Worked example: draw $10,000 at the 1.5% starting rate for six months, assuming that rate applies to the full draw each month. The fee is $900, so you repay $10,900 in six monthly payments of $1,816.67. Annualized, that is roughly 30% APR (about 35% on an effective annual basis). We used $10,000 because it fits under both reported caps. If your offer carries a higher rate, the APR rises roughly in proportion.

Novo Funding requirements

Novo Funding requires an active Novo business checking account with at least six months of history, and it uses a soft credit check that won't affect your score.

Novo decides from your account history and activity; final approval is at Novo's discretion.

Merchant cash advance rules that protect you

Novo Funding offers to businesses run from New York must show an estimated APR, finance charge, term and payments under the state's Commercial Finance Disclosure Law (offers up to $2.5 million, since August 1, 2023). California and Utah have similar disclosure rules, and Virginia requires sales-based financing providers to register with the State Corporation Commission, which Novo Funding LLC did.

Novo does not publish its policy on confessions of judgment, UCC liens, personal guarantees or stacking with other advances. Ask for the full agreement and the state disclosure before you accept a draw.

Pros and cons

Novo Funding's strengths are speed and simplicity for Novo customers; its weaknesses are an unclear limit and a partly hidden price.

Pros

• Soft credit check; applying won't dent your score
• Money appears in your Novo balance right after approval
• Revolving: repaid amounts can be drawn again
• Fee only on what you draw, with no origination or prepayment fee reported
• A published starting rate of 1.5% a month

Cons

• Only for Novo checking customers with six months of history, and reportedly invite-only
• Maximum is unclear: $75,000 per Novo, $10,000 per Finder in 2026
• Maximum rate and full fee schedule are not published
• Fixed monthly payments don't shrink in a slow month
• Finder reports no reporting to business credit bureaus, and BBB reviews of Novo are poor

Novo Funding alternatives on Lender List

The closest Novo Funding alternatives are banking-linked or revolving products with larger, published limits.

• Bluevine — line of credit up to $250,000 alongside its own business checking
• Fundbox — revolving line with weekly repayment over 12 or 24 weeks (Bankrate)
• QuickBooks Capital — term loans of $1,500 to $250,000 at 9.99% to 36% APR for QuickBooks users
• Square Loans — payments that flex with card sales, for Square sellers
• Browse all merchant cash advance providers on Lender List

Frequently asked questions about Novo Funding

Novo Funding is a legitimate direct funder for Novo customers, priced from 1.5% a month over six months.

Is Novo Funding Legit? Yes. Novo Funding LLC is a subsidiary of Novo Platform Inc., a fintech operating since 2016, and it appears on Virginia's register of sales-based financing providers (June 2024 list). Finder reports Novo at 4 out of 5 on Trustpilot (4,847 reviews) but 1.02/5 on BBB (26 reviews, 205 complaints, A- rating).

What Are the Novo Funding Requirements? You need a Novo business checking account that you use as the primary account holder, with at least six months of activity. Novo runs a soft credit check and publishes no score or revenue minimum; United Capital Source cites $500 in monthly revenue, and Finder says you need a preapproval offer.

Is Novo Funding a Direct Lender or a Broker? It is a direct funder. The advance comes from Novo Funding LLC, Novo's own wholly owned subsidiary, not from a network of outside funders. Novo's separate Business Loan is different: Continental Bank issues it, and its APR and terms depend on your credit.

What Happens If My Sales Drop? Your Novo Funding payment stays the same. Third-party reviewers describe fixed monthly payments rather than a percentage of sales, so a slow month does not shrink what you owe. Novo publishes no reconciliation process; contact Novo before a missed payment rather than after.

How Much Can I Get From Novo Funding? Novo has said up to $75,000, and United Capital Source cites $2,000 to $75,000. Finder reported a $10,000 maximum in October 2026, and Novo's current pages name no ceiling. United Capital Source says the limit depends on revenue, account activity and business performance.

Is Novo Funding the Same as the Novo Business Loan? No. Novo Funding is a merchant cash advance from Novo Funding LLC, repaid over six months per draw at a monthly factor rate. The Novo Business Loan is a term loan issued by Continental Bank, priced with an APR based on creditworthiness, and can be prepaid without penalty. Novo Funding draws work more like a line of credit.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.