Novo, described as a “powerfully simple” financial platform for small businesses, has announced the launch of a new offering, Novo Funding, designed to provide rapid and flexible access to working capital.
Novo has secured a $125m facility from Victory Park Capital (“VPC”), aimed at providing working capital through Novo Funding, according to a report from FinTech Finance News.
Novo operates as a financial platform specifically designed for small business owners. With the introduction of Novo Funding, the company offers a streamlined and instant way for small businesses to access up to $75,000 in working capital. This includes a straightforward application process, autonomy over fund deployment, and clear, straightforward repayment schedules.
The newly acquired $125m will be channelled into Novo Funding to support small business owners’ short-term financial needs and long-term growth objectives by providing a seamless working capital experience.
This launch follows a successful pilot of Novo Funding, where more than $35m was accessed by thousands of small business owners. Additionally, Novo continues to develop solutions to improve small business cash flow, including launching a new debit card, completing a Gusto integration, and enhancing Novo Invoices. The company also earned a spot on the 2023 Forbes Fintech 50 list.
Novo founder and CEO Michael Rangel said, “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. Novo Funding is built to support small business owners’ short-term financial needs and long-term ambitions with a seamless working capital experience.”
Kevin Phillips, EVP of Credit at Novo, noted, “There’s simply no other small business working capital product on the market that combines the speed and simplicity of Novo Funding.”
Jason Brown, Partner at VPC, also said, “Michael and the Novo team have thoughtfully expanded their offerings to meet the financial needs of small business owners, and we are pleased to be partnering with them to support the new Novo Funding product.”
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