Novo, a financial solutions platform for small businesses, has announced a partnership with Squarespace, a website design platform for building online businesses. This partnership aims to support small businesses by offering Novo's customers benefits like a free Squarespace domain for a year, savings on other services, and a $75 reward for Novo account holders who meet certain spending criteria.
Squarespace will list Novo as a preferred vendor and customers who obtain a Novo account will get access to Novo's banking services which include working capital loans.
Novo's initiative to partner with companies like Squarespace, LegalZoom, and QuickBooks is part of a broader strategy to provide small businesses with access to a range of affordable and high-quality services to facilitate growth.
For more details, you can read the full article on Novo's website.
This partnership has a similar strategy behind it as when Square acquired Weebly back in 2018. Shopify, an e-commerce platform, has been offering business financing to its customers for years. It's surprising others like Wix and GoDaddy haven't also made some similar direct partnerships or acquisitions.
With the trend of banks and fintechs partnering with website builders and other services, it's evident that such collaborations are becoming increasingly crucial for providing comprehensive support to small businesses and loan sourcing for fintechs and other business financing providers. These partnerships not only offer financial solutions but also integrate essential business tools, thereby creating a more seamless and supportive ecosystem for small business owners. By aligning with platforms that small businesses frequently use, like website builders, banks and fintechs can effectively broaden their reach and impact, offering more tailored and accessible services to this vital sector of the economy.