Novo and our accounts team uses both proprietary and third-party software during our application review process. While feedback from these systems is taken into consideration for your application, the ultimate decision comes down to Novo and our accounts team’s ability to support 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. Some common reasons for application denials are listed below.
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.
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.
Business is out of scope for our accounts
Unfortunately, Novo is unable to work with some kinds of businesses, including but not limited to cryptocurrency, privately-owned ATMs, marijuana/cannabis, gambling, crowdfunding, or money services. For a complete list of restricted business categories, please visit - Why are certain businesses restricted from using Novo's services?
For compliance reasons, Novo is required to maintain all submitted applications for up to five years.