Novo Announces Results Of Working Capital Pilot Program For Small Businesses

Novo, the powerfully simple® financial platform for small businesses, today announced that it is conducting a pilot of its working capital program that to-date has originated more than $20 million in merchant cash advances to small business owners.

“For people who are running businesses that are bringing in less than $500,000 in annual revenue, their options for borrowing money are extremely limited,” said Michael Rangel, CEO and co-founder of Novo. “Small business owners can find themselves either taking on extremely high interest credit card payments when they need to borrow a few thousand dollars, or going through a drawn-out approval process with their bank only to find out that they do not meet the bank’s revenue requirements for a loan.”

He added, “At Novo, we’re building a working capital product that truly serves the needs of small business owners — one that can quickly analyze their revenue streams, and offer them the capital they need and at a rate that is fair.”

Novo is currently conducting a pilot for the company’s small business working capital. Over the last six months, Novo has worked with more than 3,000 Novo customers to provide access to as much as $50,000 in flexible working capital. Upon the completion and analysis of the pilot, Novo will launch its working capital program to Novo customers in the coming months.

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Novo Funding is the latest in a series of capabilities Novo has launched to help small business owners improve their cash flow:

• Novo recently announced enhancements to Novo Invoices to help small business owners receive payments faster.
• In 2022, Novo launched Novo Boost for giving small businesses and the self-employed  same-day access to payments received through Stripe, and Express ACH for processing same-day ACH payments. With Novo Boost plus Express ACH, the typical week-long process of moving money from an e-commerce platform to a business checking account, and then using these funds to pay yourself or a vendor, can now happen in one day.