Novo vs Lili vs Chase — My Small Business Checking Experience

Starting and running a small business can be tough but also super rewarding. There are tools and tricks out there that can make things way easier for you. I’ve been there, doing the same things over and over, so I know how great it feels to find something that helps out.

Especially when dealing with money stuff, like banking, it’s cool to find easier ways to do it. I got tired of old-school banks and started checking out online ones. After trying a bunch, I found some that really helped lighten the load.

I know it’s hard to find the right fit, so I made this guide to help you out. I’m gonna talk about my experience with three banks that I used for my small business checking account: Novo, Lili, and Chase. Out of all of them, I personally love Novo the most. It’s been great for me.

In this guide, you’ll learn why it’s good to have a special bank account for your business and what to look for in a bank. I’ll also dive deeper into each bank and compare them, so you can pick the best one for you.

Ready? Let’s dive in!

Why Get a Separate Bank Account for Your Business?

You might think, “Hey, I’ve got a personal bank account. Why not just use that for my business too?” Especially if you’re just starting out. I get it, it seems easier. But trust me, mixing your personal and business money? Bad idea.

Here’s why:

Keep Things Simple

Having a separate business account makes it way easier to see what’s going on with your money. You can easily check your balance, move money around, and see all your transactions without getting mixed up with your personal stuff.

Protect Your Personal Money

If something goes wrong with your business (fingers crossed it doesn’t), your personal money stays safe. So, even if your business faces some issues, your personal savings won’t be touched.

Look Professional

People take you more seriously when you have a business account. It shows you’re legit and committed to your work.

Share the Load

If you have a team or plan to, a business account lets others help with money stuff. You can give access to people you trust without sharing your personal account.

Tax Time is Easier

Come tax season, having a separate account makes things way less stressful. You can easily see what you earned, what you spent, and get all the benefits meant for businesses.

Save Money

Old-school banks can charge a lot just to keep an account or make transfers. Online banks? They’re usually cheaper and sometimes even free.

Online Banking Rocks

No more waiting in lines or rushing to the bank before it closes. With online banking, you can handle your money stuff anytime, anywhere. Plus, many online banks have cool tools to help you manage your money better.

Get Better Help

Online banks that focus on small businesses really get you. They’re there to help and support you, unlike big banks that have a ton of other stuff going on.

So, if you’re serious about your business, get a separate account. It’s a game-changer.

What to Look for in a Business Bank Account?

So, you know you need a separate bank account for your business. But how do you pick the right one? Don’t stress, here’s a checklist to help you out:

• Watch Out for Fees: If a bank’s got a bunch of fees, it’s a no-go. Why pay extra when there are banks that don’t charge you for every little thing?
• No Minimum Balance: You should be able to use all your money without any “minimum balance” rules. It’s your money, after all.
• Insurance is a Must: Make sure the bank is insured by the FDIC. If they’re not, that’s sketchy.
• Cool Tech Features: Look for banks that have tools to help you manage your money and business tasks. Things like automatic payments and keeping track of your spending.
• Debit and Credit Cards: A good bank will give you cards to use for your business. This way, you can spend, deposit, and even build credit.
• Earn Interest: Some banks let you earn interest on the money you have with them. It’s like getting free money just for keeping your cash there.
• Safety First: Since you’ll probably do a lot online, make sure the bank’s website and app are super secure.
• You’re the Boss: You should be able to control your money and account settings without the bank getting in your way.

Once you know what to look for, gather your paperwork and get ready to open your account.

Now, let’s check out some bank options to see which one’s the best fit for you.

Novo vs. Chase vs. Lili: Which One Rocks?

Alright, let’s talk about three cool bank options for your business: Novo, Chase, and Lili. I’ve tried all of them, and honestly, Novo is my top pick. Don’t get me wrong, Chase and Lili are great too, but there’s something about Novo that just makes banking super easy.

Let’s dive deeper into each one, check out their good and not-so-good points, and see which one’s the best fit for you.

About Novo Business Checking

Novo offers business checking accounts with no monthly fees, minimum balance requirements, or overdraft fees. This makes it an attractive option for small business owners looking to avoid common bank fees. Novo accounts also come with a Visa debit card, online banking capabilities, and integration with popular accounting software — giving businesses key tools for managing finances.

For financing needs, Novo provides both term loans ranging from $5,000 — $500,000 and lines of credit from $10,000 — $100,000. The loan approval process is quick, with decisions made in minutes or hours based on factors like business revenue and average bank account balances. This fast financing can be invaluable for small businesses.

A major perk of Novo loans is that there are no origination fees, prepayment penalties, or hidden fees. You simply pay competitive interest rates. This transparency is a major draw for small business owners who want to avoid surprises.

Finally, Novo stands out for providing exceptional customer support accessible 24/7 via phone, email or chat. They also offer educational resources specifically to help small business owners master finances and gain expertise. This level of service distinguishes Novo.

Pros of Novo:

- Transparent: No hidden fees or surprise charges.

- User-Friendly: Their app is super easy to navigate.

- Integration: Works well with other business tools and apps.

- Flexibility: No rules about keeping a minimum balance.

- Business Debit Card: Makes spending and tracking super simple.

- Rewards: Earn cash back on some of your purchases.

- Great Support: Their team is always ready to help out.

Cons of Novo:

- Online Only: Since it’s an online bank, there aren’t any physical branches to visit.

- No Credit Card Offering: As of now, they only offer a debit card, not a business credit card.

About Chase Business Banking

Chase offers a variety of lending options for small business beyond just checking accounts. They provide lines of credit, SBA loans, equipment loans, and credit cards — making them a one-stop financing resource. Loan specialists are available to help small businesses find the right lending solutions.

For accepting payments, Chase provides several merchant services options for taking card payments in-store, online, or on-the-go. Small businesses can take advantage of these services along with business accounts. Useful features like fraud protection and reporting are included.

Chase has over 60,000 fee-free ATMs nationwide for business account holders. Easy access to ATMs for deposits and withdrawals is crucial for small business owners constantly on the move. Chase’s extensive network is valuable.

Pros of Chase Business Checking:

- Widespread Branches: Chase has tons of physical locations, so there’s probably one near you.

- Mobile Banking: Their app lets you manage your money on the go.

- Business Credit Cards: They offer some solid credit card options with great rewards.

- Safety Net: Chase is a big, established bank, so your money’s in safe hands.

- Business Loans: If you need some extra cash for your business, they’ve got loan options.

- 24/7 Customer Service: Got a question at 3 AM? They’re there to help.

- Special Offers: They often have sign-up bonuses or other promotions for new business accounts.

Cons of Chase Business Checking:

- Monthly Fees: Some of their business accounts come with monthly fees, though there are ways to waive them.

- Minimum Balance Requirements: Some accounts require you to keep a certain amount in the bank.

- Transaction Limits: Depending on your account, you might have a limit on free transactions each month.

About Lili Small Business Banking Services

Lili provides free business checking accounts with no minimum balance requirements. This makes it easy for small business owners to open an account with little money upfront. Debit cards and mobile check deposits are also included free.

A major perk of Lili is early direct deposit of funds. Payroll, tax refunds, and other deposits post to Lili accounts up to 2 days early. This can help small businesses access funds faster.

Lili offers 1.00% APY interest on business checking account balances. This is much higher than typical banks. Earning interest while housing operating funds can be a nice perk.

Business accounts with Lili come with free ACH transfers, mobile check deposits, and access to over 55,000 free ATMs. Small business owners will appreciate these money-saving conveniences.

Pros of Lili Business Checking:

- No Monthly Fees: Keep more of your money; Lili doesn’t charge monthly maintenance fees.

- Mobile-First: Designed for your smartphone, making banking super easy on the go.

- Expense Management: Automatically categorize and track business expenses.

- No Minimum Balance: Start and keep your account without any minimum amount.

- Early Direct Deposit: Get paid up to 2 days earlier with direct deposit.

- Free ATM Withdrawals: Access to over 38,000 fee-free ATMs.

- Tax Tools: Helps you set aside money for taxes and gives you a tax report.

Cons of Lili Business Checking:

- Online Only: Lili is digital, so there aren’t any physical branches.

- Deposit Limits: There might be limits on how much you can deposit at once.

- No Business Loans: Currently, they don’t offer business loan options.

- Limited Integrations: Might not sync with all the business tools or software you use.

Novo vs Chase Vs Lili, My Experience In The Real World

What I didn’t like about Chase

After over a decade of personal banking with Chase, I decided it was time to open a business checking account for my new startup venture. I scheduled an appointment at my local branch to open the account and provide all the necessary paperwork.

The process of actually opening the account was smooth, though it took over an hour with a business banker asking questions and entering info. I opted for the basic business checking account that advertised no monthly fees.

A month after opening the account, I noticed a $15 monthly service fee had been charged. When I contacted Chase, they informed me that fee waivers required a minimum daily balance I was not meeting. This was frustrating since minimum balance requirements were never disclosed to me.

I tried to speak with the branch manager to waive the fee due to misunderstanding the requirements, but they refused. On top of the monthly fee, I was charged overdraft fees when my balance briefly dipped below $0. I had no overdraft protection set up.

Attempting to dispute the fees with customer service was pointless. The representatives were unhelpful, saying fees were valid per the account terms. It seemed like they were reading from a script and unwilling to solve my problem.

In the end, I wasted time and money with Chase. For a long-time customer like myself, the rigid fees and poor customer service were really disappointing. I ended up closing my new business account within 3 months of opening it. I should have chosen a bank that was more upfront about fees from the beginning.

What I didn’t love about Lili

I was eager to take advantage of Lili’s free business checking account and early direct deposit capabilities. Opening the account online was simple enough, though customer support was slow to respond to my inquiries during the process.

After funding the account with my initial deposit, I waited the standard 3 business days for the funds to fully clear. To my surprise, when I went to pay my business insurance bill online, the payment was rejected due to insufficient funds.

Checking my Lili account showed the deposit was still on hold and unavailable for use, beyond the standard hold period they had communicated. When I contacted support, they explained they will sometimes place extended holds at their own discretion.

This caused late fees on my insurance bill that Lili refused to reimburse. I also ran into issues with automatic transfers not working properly from my Lili account. The transfers would initiate but then fail days later without explanation.

Lili’s customer service struggled to provide solutions, often taking 2–3 days to respond to each query. They instead put the burden back on me to troubleshoot technical issues.

While I liked Lili’s lack of fees, the poor execution administering my account cost me time and money. The touted early direct deposit also didn’t apply to my payroll based on their internal rules. In the end, I couldn’t recommend Lili for a seamless business banking experience.

Why I went full speed with Novo

After the headaches I endured with Chase and Lili, I was wary about trying another online business bank. But several entrepreneur friends raved about their accounts at Novo. I decided to give them a shot.

The application process was seamless. Novo’s website provided complete transparency on their business account fees, minimums, and policies upfront. This gave me confidence they had nothing to hide.

Funding my account took less than 24 hours once initiated, with no extended holds placed on my deposit. I immediately had full access to the funds to pay bills and manage cash flow. Novo’s interface also made it easy to set up recurring payments properly.

Whenever I had an inquiry, Novo’s customer service responded promptly by phone, chat or email. The representatives really understood the needs of business owners. Novo also provides tons of educational resources on financial topics relevant to entrepreneurs.

After a couple months of smooth sailing with Novo, I can say this has been my best business banking experience by far. The fast loan decisions are also a huge help for accessing capital quickly when opportunities arise.

I’m so glad I didn’t give up on online business banking after my early missteps. Novo proved there are solutions out there capable of effectively serving the needs of growing companies like mine.

Novo Vs Chase

- Fees: While Novo prides itself on transparency with no hidden fees, Chase often has monthly fees for their business accounts, although there are ways to waive them.

- Digital Experience: Novo is designed for the modern entrepreneur with a user-friendly, mobile-first approach. Chase, being a traditional bank, offers mobile banking but might not be as streamlined or intuitive as Novo’s platform.

- Branch Access: Chase has physical branches nationwide, which might seem like an advantage. However, Novo’s entirely online model ensures you can handle all your banking needs without ever needing to visit a branch, making banking more convenient and efficient.

- Business Tools Integration: Novo stands out with its ability to integrate seamlessly with other business tools and apps, making financial management smoother. Chase, being a larger institution, might not offer the same level of integration or flexibility.

- Target Audience: Novo is tailored specifically for small businesses and freelancers, ensuring their features are directly aligned with such needs. Chase, being a massive bank, caters to a broader audience, which might mean their services aren’t as specialized or focused on the unique needs of small business owners.

Novo vs Lili

- Business Integration: Novo shines with its ability to integrate seamlessly with various business tools and software, streamlining your financial tasks. While Lili offers some expense management features, it might not provide the same breadth of integration as Novo.

- Fee Structure: Both Novo and Lili emphasize no hidden fees, but Novo’s transparency and commitment to keeping costs low for entrepreneurs give it a slight edge, ensuring you’re not caught off guard with unexpected charges.

- User Experience: Novo’s platform is designed with the modern business owner in mind, offering a user-friendly and intuitive interface. While Lili also offers a mobile-first approach, Novo’s platform might be more comprehensive for diverse business needs.

- Customer Support: Novo is known for its responsive and helpful customer support, ensuring that any issues or queries are addressed promptly. While Lili offers support, Novo’s reputation in this area makes it stand out.

- Flexibility: Novo’s banking solutions are tailored to cater to a wide range of businesses, from freelancers to growing startups. Lili, though designed for freelancers and gig workers, might not offer the same level of flexibility or scalability as Novo for diverse business structures.

Chase vs Lili

- Banking Model: Chase is a traditional bank with physical branches nationwide, offering a blend of in-person and online services. Lili, on the other hand, is a digital-only platform tailored for freelancers and gig workers.

- Fee Structure: Chase often has monthly fees for their business accounts, although there are ways to waive them. Lili emphasizes a no-hidden-fees approach, particularly appealing to those wary of unexpected charges.

- Business Focus: While Chase provides banking solutions for a broad audience, including large corporations and individual consumers, Lili is specifically designed for freelancers and independent contractors, focusing on their unique financial needs.

- Digital Experience: Lili offers a mobile-first banking experience, ensuring that users can manage their finances on the go with ease. Chase, though having a mobile app, is rooted in its traditional banking model, which might not be as streamlined for purely digital users.

- Additional Services: Chase, being a larger institution, offers a wider range of financial products, including loans, credit cards, and investment services. Lili, while more niche in its focus, provides tools tailored for freelancers, such as tax and expense management features.

Final Thoughts

Novo, Chase, and Lili each bring something special to the table for small businesses. But after diving deep into the comparisons, Novo stands out as the top choice because of its well-rounded benefits. Now that you’re in the know, consider what your business truly needs and take the leap with the right checking account to streamline your operations.

Selecting the right bank for your business is more than just about fees or features; it’s about finding a financial partner that aligns with your business goals and growth trajectory. A bank that understands the unique challenges and opportunities that small businesses face can be invaluable. Novo, with its tailored approach, seems to have a pulse on the needs of modern entrepreneurs.

Remember, the foundation of every successful business is not just a great idea, but also the right tools and partners to help it flourish. As you continue on your entrepreneurial journey, ensure that every decision, including your banking choice, propels you closer to your vision.