Your first five cards are free. Each additional card costs an extra $5 per month.
Your total balance is automatically deducted from your business checking account each month.
You can redeem points for a statement credit through Brex’s online dashboard.
The requirements for the Brex Corporate Card (and its rewards program) should give you a pretty clear picture of its target market. Above all else, your business should be heavily capitalized and/or have a steady revenue stream. Many credit card companies may not consider businesses that are less than a year old for credit applications. Business credit cards can also facilitate access to loans and lines of credit by establishing a business credit profile, which is crucial for long-term financial planning.
Regardless of where the money comes from, you’ll need to maintain a high bank balance every month to pay back the card’s balance in full. If you have no concerns about that department, you can move on to the following most important requirement: the tech industry.
Since many business credit cards exist, businesses often narrow their search by prioritizing sign-up bonuses and rewards programs. If a well-funded tech startup were to base its decision on these factors, the Brex Corporate Card would likely be a no-brainer.
Not only would the company save money on vital resources, but it would also have a much easier time deciding which resources to choose. Tech startups have a ton of choices when it comes to software tools. With Brex, they can access some of the most reputable options for discount prices. This makes the alternatives significantly less appealing. Why bother shopping around when there’s no competition in terms of price?
The rewards program is geared towards individuals who use ridesharing services as their primary source of transportation. Such individuals usually live in big cities and rarely go for more than a few days without using Uber, Lyft, etc. Brex’s rewards system for ridesharing is so advantageous that it doesn’t make sense to get this card if you rarely use the services mentioned above.
You could draw this conclusion from the rewards program alone. Like all Brex offerings, Brex Cash and the Brex Daily Card are geared towards early-stage tech startups. Odds are, a more established business has already built an arsenal of subscription services and isn’t looking to take on more recurring expenses.
An established business has also probably developed a solid banking partnership. Though Brex Cash customers can have other bank accounts, this might not make sense considering Brex’s complete lack of fees. In other words, why run the risk of incurring fees from another bank account when you can eliminate this risk?
Thus, an early-stage tech startup should consider Brex before opening a traditional bank account and getting a traditional debit card. Brex may be a safer option for their tumultuous finances, and no bank can compete with their standard rewards program.
Brex bases credit decisions on a business’s cash flow and available runway. The company will run a credit report on the business but does not look at personal credit scores. As such, you can get approved if you have bad credit if your business meets the financial requirements for approval.
Yes, Brex partners with the business credit bureau Dun & Bradstreet as well as Experian. Brex reports your payment history, account balance, credit limit, and more. Reporting to credit bureaus helps startups build their business credit history.
Brex’s target market is tech startups with all the funding they could ever want, and almost all of it has come from investors. Has your business already begun earning steady revenue on its own? If so, your business is probably too advanced in its development to meet Brex’s criteria.
Your application might also be declined if not enough of your funding comes from investors. Businesses operating on investors’ funds are less likely to run out of money. And when you always have cash at your disposal, you have no trouble paying your entire balance every month.
Many business credit cards have loose requirements for personal credit scores and carry very few fees. And if you pay off your balance at the same rate as a charge card, you won’t have to worry about high interest rates or limited borrowing power. In this case, you should look into the myriad of other advantageous and highly accessible business credit cards on the market.
Another option is financing your business through other means, like small business loans. Many business financing companies do not require high credit scores, personal guarantees, or more than six months in business. Also, the occasional slow month won’t automatically disqualify you from competitive interest rates or longer terms.
If Brex declined your application because of your cash flow, you must find a business financing company specializing in your financial circumstances.
