How do I manage my business loan?

Quick answers to the questions we hear most once your loan is funded.

How will the interest and my loan repayment amount be calculated?

Your interest is calculated using the Actual/365 daily accrual method. This means interest builds up day by day based on the exact number of calendar days between your payment dates, using a standard 365-day year.

Because this is a simple interest loan, your interest is calculated only on your remaining principal balance. If you pay off your loan early, you will save the interest.

When is my first installment due?

Once your loan is approved and funds land in your Novo checking account, your first payment date is set based on the schedule you chose:

• Biweekly schedule: Your first payment is due 2 weeks from the day funds are transferred in your account.
• Monthly schedule: Your first payment is due a month after your funds are transferred to your account. It will be 4 days after your first statement ends.

You can check your full schedule, payment amounts, and upcoming due dates anytime on your Loan Dashboard (under Installment Schedule) or in your monthly account statements.

When are the Novo Business Loan statements generated?

Statement schedules depend on your loan repayment structure, but you will always have a full 4 days from your statement generation date to your payment due date to review and pay:

• Bi-weekly Loans: Statements are generated every two weeks on Day 10 of your payment cycle.
• Monthly Loans: Statements are generated on the same date each month.

Can I make manual payments towards my Novo Business Loan?

Yes, customers can make manual payments towards their Novo Business Loan from your dashboard. You can choose the option to make the payment from your Novo account or any external business account.

Can Novo Business Loans be paid early?

Yes! You can make extra payments or fully pay off your loan early with zero prepayment penalties. If you pay off the entire loan balance early, you only pay interest for the days you used the funds. You are not required to pay interest for the remaining months of your original term.

Please note that making an extra payment will not lower your next scheduled installment amount; instead, it will reduce the total number of installments left, helping you pay off your balance faster.

Will you report to any credit reporting agency?

We may report information about your account to credit bureaus. Late and missed payments as well as other defaults on your account may be reflected in your credit report.

What happens if an automatic payment (AutoPay) fails due to insufficient funds?

Your AutoPay payment will occur between 12-1pm ET on the Payment Due Date.

If your Novo account does not have sufficient funds, any remaining amount owed will be debited from your external business account, if you have added one when setting up your AutoPay.

If a Scheduled Debit is returned for insufficient or uncollected funds, we may retry the debit up to two additional times within the retry window permitted by ACH Rules.

How is the late fee calculated?

If the full installment amount has not been initiated by 11:59 pm ET on the payment due date, a late payment fee will be posted to your loan the day after the payment due date. If the initiated payment is returned, reversed, or otherwise fails to settle, a late payment fee can be assessed. Only one late payment fee will be assessed per missed installment.

The late fee is equal to 3% of the outstanding installment amount which may include any past-due amounts and will not be calculated off any previously assessed late fees.

Are there any hidden fees attached to the Novo Business Loan?

Novo Business Loan comes with no origination fees or prepayment penalties. However, a 3% late fee is charged if a payment is missed. We strongly encourage you to maintain sufficient balance in your account to cover the payment and avoid unnecessary fees.

Can I have multiple, active Novo Business Loans at the same time, or can I refinance/renew my existing loan?

You will only be invited to apply for one Novo Business Loan at this time. In the future, we may offer the ability to have multiple, active loans.

After the loan is approved and deposited into your Novo Checking account, it cannot be adjusted.