Novo and our partner bank, Middlesex Federal Savings, use several proprietary and third-party software during our application review process. While all of these systems are taken into consideration for your application, the ultimate decisions come down to Novo and our partner bank’s ability to bank your business within our system and structure.
We understand the frustration that comes from having an application declined and we do our due diligence to ensure that each application is thoroughly reviewed before a decision is made. Please note that your credit report is not used on your application and that any denied application will not impact you or your business. For compliance reasons, we are not always allowed to explicitly state why your application was denied, but our team will do their best to answer your questions should you have them
Complex Business Structure
One of the most common reasons that an application may be denied is due to the business having a complex ownership structure. Unfortunately, Novo is unable to support Series LLCs or other similar types of businesses but we do hope to support these in the future. Please reach out to support if you own a Series LLC and would like to be added to the waitlist.
Unable to Verify Documents
In order to process an application for a business Novo requires proof that there is a link between you and your business as the primary applicant. If you are not listed as a director, member, or owner on your business documents then your application may have been declined because of this.
You may have had Previous Closure or Obligations
If you have had a checking account closed by another institution other than by your request. (i.e. repeatedly spending more than your account balance or not paying off your negative balance.) Your account may also have been declined if you have attempted to open a high number of accounts in the last year.
Your business is a business that we cannot bank with
Unfortunately, Novo is unable to work with businesses related to cryptocurrencies, privately-owned ATMs, marijuana/cannabis, gambling, crowdfunding, or money services.
For compliance reasons, Novo is required to maintain all submitted applications for up to five years.