Azlo is Closing March 31st

We have a new comparison updated to include a new banking solution to replace Azlo.

Brex vs. Mercury vs. Novo

While it might not seem like much, getting a high-quality and FDIC-insured online business bank account through a banking service that is tailored for small businesses, startups, and scalability will make business upgrade transitions a breeze. 

With numerous online business bank accounts to choose from, it can be difficult to find one that fits your needs. Three very popular services are Azlo, Mercury, and Novo. 

If you’re on the fence about a business bank account service, use this service comparison so you can know what you’re getting into and which service might be the best fit for you. To that end, we’ve identified some key reasons why you should consider getting small business banking for your startup or small business.

 

Why You Should Consider Small Business Banking For Your Startup

When you start a new business, keeping track of your income, expenses, and taxes can be time-consuming and confusing. 

This is especially true if you are operating as a small business or sole proprietorship. Differentiating between your personal finances and your businesses’ finances can make day-to-day banking easier and financial concerns far less come tax time. 

If you work with an accountant, you will likely be able to hand over many of the files from your small business bank account and allow them to file your taxes using your banking information. No matter how old your small business is, you should consider small business banking for these reasons. 

Small business banking differs from big banks, credit unions, or other online personal banks by providing business-specific features for streamlined business operations. Features focus on managing finances, including a snapshot overview (money in vs money out), recent activity, easy methods to fund the account, simple payments, and easy access to statements.

 

Azlo vs. Mercury vs. Novo

Three very popular small business banking services are Azlo, Mercury, and Novo. 


Azlo Overview ( 1/7/21 Update – Azlo has announced they are shutting down.)

Azlo’s online bank account for small businesses is just that. This online bank provides feature-rich banking services entirely online for small business use. Azlo touts its services as fee-free and includes available options like unlimited transactions, online invoicing, and other business tools. 

Azlo offers tiered account subscriptions. The free business account does not require any minimums, has free ATM cash withdrawals, free unlimited transactions, no overdraft fees, free direct payments, and free tools that help your business grow. 

If you’d like to go pro, you can, enabling features like automated services, instant transfers, unlimited envelopes, and automation with invoicing (right in your account). 


Mercury Overview

Designed with startups in mind, Mercury online banking is there to help businesses scale. Mercury provides FDIC-insured bank accounts that come with API access, team management, virtual cards, and much more. Intuitive features include user permissions, company analytics, sharp (two-factor) security, searchable transactions, and intuitive payments. 

Any US user can get an account for free with no monthly minimum or minimum balances. Pro users can upgrade to the “Tea Room” account if they have USD 250K+ in deposits. The Tea Room account gets free accounts, free domestic wires, partner rewards, and you get tea when you join!

For both subscription styles, there are no monthly or overdraft fees. Users can also get a checking account, savings account, and debit card, as well as free ACH transfers (sending and receiving), free checks (sending and receiving), free to receive domestic files, and only USD 5 for the standard accounts to sending a domestic fire (otherwise free for the Tea Room), free to receive international wires and USD 20 to receive them. 

For managing the account, both account styles have transaction API access, payment API access, team management services and bookkeeper accounts.   


Novo Overview

Novo business banking is another online business banking tool that provides feature-rich business bank accounts, lots of free services, and lots of available integrations. At this moment, there is only a free subscription type with scalable services. 

The Novo business bank account is FDIC insured and features no hidden fees, monthly fees, or minimum balance requirements. 

A Novo business bank account comes with a mobile app (for tablet and mobile device), easy application, actual customer service, free transfers, free mailed checks, free incoming wires, numerous small business tool integrations, refunds on all ATM fees, and thousands of dollars in exclusive perks. 


Similarities Between  Azlo vs. Mercury vs. Novo

Azlo, Mercury, and Novo each offer a completely online business bank account for US citizens and residents that is designed for ease-of-use for operating a business. These online banks are tailored towards sole proprietors, small businesses, and startups so that your bank changes along with your business year after year. 

All three banking services provide a range of features with their free option, and all three are FDIC-insured. Each free banking service provides checking and savings accounts, no minimum balance requirements, extensive use of ATM networks, free unlimited transactions, and no overdraft fees. In some cases, sending money is also free, but this will vary from service to service. 

Additionally, each service looks to integrate business tools that streamline the business process and allow for better scalability. All three services offer free mailed checks, which is a perk that is hard to come by even in regular business banking services. 


Differences Between Azlo vs. Mercury vs. Novo

Mercury comes with bookkeeping services included for free. There are a lot of free services like free sending and receiving of ACH and checks, receiving domestic wires, and receiving international wires. Small fees are required for sending domestic wires, and sending international wires is USD 20 all around. 

Mercury offers the most in terms of free services, however, they are lacking when it comes to business tool integrations. Instead, the platform provides free access to transactions and payments APIs, so their payment and transaction services can be integrated into other financial services apps or websites. 

When it comes to business banking functionality, Novo can get you set up with a bank account in under 10 minutes. It also goes above and beyond by promising no hidden fees and refunds ATM fees. Novo has exceptional customer service, so you know that you’ll be able to talk to a real person within a matter of minutes if need be. Novo also connects with a range of business tools, like Stripe, Quickbooks, Slack, Xero, Transferwise, and Zapier.

One of the biggest stand out features of Azlo is its integrated invoicing. Surprisingly, Azlo is a free service, and it still allows for unlimited invoicing. You can always upgrade to a pro account when you scale and get automated invoices integrated right into your bank account. 

Note: As of 1/7/21 Azlo has announced they are shutting down. As we look for additional banks to compare and provide we recommend to not open a new account with Azlo until more details are available. Novo and Mercury are great alternatives.