How do I manage my business loan?

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

When is my first installment due?

Once your loan is approved and the funds land in your Novo Checking account, your first payment is due 2 weeks later. You can find your exact due date, along with your full payment schedule, on your Loan dashboard under Installment Schedule. It is also listed on every statement and in your Loan Overview, so you never have to go digging for it.

How will my interest and repayment amount be calculated?

Interest is calculated using the Actual/365 method: it accrues daily, based on the exact number of calendar days between your payment dates, using a 365-day year. Because this is a simple interest loan, you are only charged interest on your remaining principal balance. Pay down the balance faster, and you pay less interest.

When are my loan statements generated?

Statements are generated every 2 weeks, on day 10 of your payment cycle. That gives you 5 days to review your statement before the payment is due.

What happens if AutoPay fails due to insufficient funds?

AutoPay runs between 12pm and 1pm ET on your due date. If there is not enough in your Novo account to cover it, and you have linked an external business account, we pull the remaining balance from there. If a debit is returned for insufficient or uncollected funds, we may retry it up to 2 more times, within the window ACH Rules allow.

Can I make manual payments?

Yes. You can make a manual payment any time from your dashboard, pulling funds from your Novo account or any external business account on file.

Can I pay off my loan early?

Yes, and there is no penalty for it. Pay off your full balance early, and you skip the interest that has not posted yet. One thing worth knowing: an extra payment does not lower your next scheduled installment amount—instead, it reduces how many installments you have left, so you reach the finish line sooner and pay less interest along the way.

Are there any hidden fees?

No origination fees, no prepayment penalties—full stop. The one fee to know about is a 3% late fee if a payment is missed, so keeping enough in your account on your due date is the one thing that actually matters here.

How is the late fee calculated?

If your full installment has not been initiated by 11:59pm ET on the due date, a late fee posts the next day. The fee is 3% of the outstanding installment amount, which can include any past-due balance, but never includes previously assessed late fees. If a payment is later returned, reversed, or otherwise fails to settle, that can trigger a late fee too. Either way, only 1 late fee is charged per missed installment.

Will you report to a credit bureau?

We may report your account activity to credit bureaus. Late or missed payments, and any other defaults on your account, may show up on your credit report.

Can I have multiple loans, or refinance my existing one?

At this time, you can have only 1 active Novo Business Loan, and refinancing or renewing is not yet available. We may expand this down the road. One more thing worth knowing: once your loan is approved and the funds hit your account, the amount is locked in and cannot be adjusted.