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Novo Funding merchant cash advance review

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Edited by Holly Jennings
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Max. Amount
Starting at 1.5%

Our verdict

If you’re a Novo business checking account customer, you could get a merchant cash advance of up to $75,000 with monthly rates as low as 1.5%.

Novo Funding is a fintech services company best known for its business checking account with no monthly fees and no minimum balance requirement. But if you're a current customer, you could qualify for a merchant cash advance (MCA) of up to $75,000. Its monthly rates start at 1.5%, and its application takes about 10 minutes to complete. If approved, you could have funds in your Novo checking account immediately.

Best for: Existing Novo Funding customers who want a quick funding solution.


  • Soft credit check only
  • Balance continues to be available
  • Can qualify with funds from other bank accounts
  • Early repayment option at no cost


  • Must be an existing customer
  • Maximum monthly rate not disclosed
  • Six-month term only
  • Fees can run high

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Who is Novo Funding best for

Novo Funding merchant cash advances are best for existing Novo business customers who need working capital to cover short-term cash flow needs. Its main benefit is quick cash in your account that you can put to use right away.

But as a quick cash flow solution, MCAs are not meant for long-term growth or investment in your business. If you need funds to finance longer term needs, a long-term business loan or SBA loan could be a better bet.

How Novo Funding works

Novo’s MCAs work more like a revolving line of credit (LOC) than a traditional merchant cash advance. While MCAs typically require repayments as a percentage of every card swipe, Novo requires monthly repayments for six months.

The way repayments work is that a factor rate is applied to your outstanding balance every month. So if you qualify for $10,000 but only draw $1,000 that month, and your factor rate is 1.5% — you’d pay $15 in fees that month. In other words, you only pay the monthly rate on funds you actually use, and there are no prepayment or origination fees if you want to pay your balance off early.

Your Novo funds are revolving and continue to be available as monthly repayments are made. For example, if you qualified for $10,000 today and took out $1,000 tomorrow, you would still have an available limit of $9,000, which can be utilized while you have an outstanding MCA. In this way, Novo’s MCA functions similarly to an LOC.

Depending on your situation, a fixed monthly payment may work better for you than paying daily or weekly out of your credit card sales as with MCAs from other lenders. But Novo’s MCA term is only for six months, making it best for short-term funding needs.

What makes Novo Funding shine

Novo stands out for its business checking account. It offers multiple business integrations, including quick turnaround merchant cash advances. After you submit your application, Novo completes its review within 24 hours.

Unlike some other lenders that offer merchant cash advances, funding to your Novo checking account is instant after approval. You don’t have to wait — or pay for — for an ACH transfer to an external bank after approval. This allows you to access funds and put them to work right away.

And thanks to Novo’s Plaid integration, which allows the company to link to your external bank accounts, you can qualify for the MCA with funds in your other business bank accounts — not just with your Novo account. So, you could get approved for the MCA even if you don’t use Novo as your primary business bank.

With Novo’s MCAs, you can pay the balance off over six months or repay it early with no prepayment penalty. Your Novo Funding balance also continues to be available as you make monthly repayments, making it more flexible than a term loan. If you need longer-term loan options you’ll have to look elsewhere.

Where Novo Funding falls short

Novo Funding lacks a certain level of transparency on its webpage regarding rates and fees. While it states monthly rates start at 1.5%, it doesn’t list its maximum monthly rate. You can only view your actual monthly rate in your dashboard.

And unless you’re a current customer with an account number, you can’t use phone support to get help. You have to send an email and wait for a response instead. Some Novo customers have complained about slow response times with Novo’s customer support.

Novo also doesn’t offer funding to the following industries:

  • Cryptocurrency
  • Money services
  • Private ATMs
  • Cannabis
  • Gambling

Novo funding MCA details

Minimum credit score/credit rangeNot stated
Monthly rate1.5%
Loan amountsUp to $75,000
TermsUp to 6 months
Approval turnaround24 hours
AvailabilityAvailable in all states
FeesLate fees apply
Other feesNone

How to qualify for Novo Funding merchant cash advances

Novo Funding merchant cash advances are only available for existing Novo checking account customers. While Novo doesn’t share its eligibility requirements, online sources state that you generally need to meet the following requirements:

  • Minimum credit score of 600, though this isn’t listed on its website
  • At least $500 in monthly revenue
  • At least six months in business

How to apply

Applying for an MCA involves going to Novo’s website and filling out the funding application. You’ll be required to provide your Social Security number and link a bank account with Plaid to verify your business revenue.

To apply for a Novo Funding MCA, follow these steps:

  1. Fill out the application with your personal and business details.
  2. Upload the requested documents.
  3. Review your application and submit it.
  4. Wait for your funding request to be approved.
  5. Accept the terms and conditions once approved.
  6. Follow the monthly repayment plan.

Novo’s funding application is open to anyone, even if you don’t currently have a Novo checking account. However, your Novo checking account needs to be open and active to receive funds.

How Novo Funding compares to other lenders

Compare Novo Funding’s rates, terms and features to other popular business loan providers.

Novo logo



Finder rating 3.3 / 5

Loan amount

Up to $75,000


Starting from 1.5%

Loan term

Up to 6 months


Have an existing Novo checking account

Lendio business loans logo

Lendio business loans


Finder rating 4.8 / 5

Go to site

Loan amount

$1,000 – $5,000,000


Varies by lender

Loan term

3 months to 25 years


Operate business in US or Canada for 6 months or more, have a business bank account, minimum 500 personal credit score, at least $20,000 in monthly revenue

Olympus Business Capital logo

Olympus Business Capital


Finder rating 3.8 / 5

Go to site

Loan amount

$500 – $100,000


Not stated

Loan term


Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month

Novo Funding reviews and complaints

BBB accredited No
BBB rating F
BBB customer reviews 1.05 out of 5 stars, based on 18 customer reviews
Trustpilot Score 4.3 out of 5 stars, based on 2,758 customer reviews
Customer reviews verified as of 29 August 2023

Novo Funding gets different reviews depending on where you look. On the Better Business Bureau website, it gets an “F” rating for how it handled dozens of customer complaints over the past three years. It also has a known government action for how it marketed itself as a bank in the past.

But on the Trustpilot site, Novo Funding gets an overall “excellent” rating from thousands of business customers who mention that it’s an “easy” business bank to work with, with minimal fees and no minimum balance requirement. One customer expressed relief that they don’t have to worry about making a deposit every month if they didn’t make a profit. Other customers say they love Novo’s business integrations that make invoicing and getting paid easier.

Negative comments and complaints center around “nonresponsive customer service” and bank account funds being frozen for excessive periods due to pending transactions not dropping off in a timely manner.

Is Novo Funding legit?

Yes, it’s legit. Novo Funding was founded in 2018 and is headquartered in Miami, FL. It offers banking services through its partner bank, Middlesex Federal Savings, F.A. Member FDIC, and its merchant cash advance is provided by Novo Funding LLC.

Frequently asked questions

How is Novo’s merchant cash advance different from a loan?

Unlike a loan that requires you to make principal and interest payments every month, Novo’s payback amount consists of the amount drawn, known as your principal, plus a percentage-based fee called the monthly rate. And unlike a loan, funds become available again as you make monthly payments.

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Novo Platform Inc. {“Novo”) is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A. Member FDIC. Merchant Cash Advance products and services are offered by Novo Funding LLC (“Novo Funding”), a wholly owned subsidiary of Novo. Merchant Cash Advances require a Novo checking account.

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