Novo reported on the results of the pilot program of replenishment of working capital, which is intended for small businesses.
Following the results of six months, this pilot program of a financial platform for small businesses provided entrepreneurs with more than $ 20 million in advance. 3 thousand representatives of the field of entrepreneurship became participants in the program. Each client received access to flexible working capital in the amount of up to 50 thousand dollars. This is stated in the Novo press release, which was published last Wednesday, March 29.
Novo CEO and co-founder Michael Rangel stated that the company is creating a working capital product that truly meets the needs of small businesses. The firm’s solutions allow it to quickly analyze revenue streams and offer the necessary capital at a fair rate.
The pilot program will be completed in the coming months. After that, the test project will be analyzed. Then the company will begin the full deployment of the working capital replenishment program.
Novo’s press release says that small business firms with an annual income of fewer than 500 thousand dollars had access only to limited options for borrowing money as part of the pilot project.
Michael Rangel says that small business representatives often take out loans with very high-interest rates when they need several thousand dollars or undergo a lengthy credit check procedure at a financial institution in order to eventually find out about their non-compliance with income requirements.
Michael Rangel argues that when interacting with small and medium-sized businesses, banks offer a traditional set of ready-made products and applications that are not sufficient to meet the current needs of representatives of this industry, which, according to him, is actually an engine of the economy. He talks about the lack of offers from financial institutions.
Novo is currently working on solutions for companies with up to 10 employees and an annual income that ranges from 25 thousand to 500 thousand dollars.
Novo also offers an Invoices solution, through which small and medium-sized enterprises can receive payments in the shortest possible time. The Novo Boost solution provides entrepreneurs with access to payments received through Stripe.
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