Latest posts by Hailey Friedman (see all)
- EverWebinar Review: Everything You Need To Know - September 17, 2020
- WebinarJam Review 2020- Everything You Need to Know - September 17, 2020
- How to Create an Evergreen Webinar – The Perfect Guide to Automated Webinars - September 17, 2020
The Brex Card for startups is perfect for small business that want to save on monthly bills, earn rewards for travel, and all kinds of other stuff.
Tech startups typically spend far more than the small business credit card rewards caps, making it difficult to find a card that better fits their needs, while also offering the rewards and any other perks at the right scale for their business.
Fortunately, Brex has an answer to this dilemma.
Table of Contents
What is the Brex Corporate Card for Startups?
The Brex corporate card for startups is a new take on credit cards, offering automated expense management, 20x higher limits, accounting system integrations, and eliminating receipt tracking.
The card also features some pretty sweet rewards and comes with no personal guarantee required.
If you’re getting ready to launch your business, and have a little money in the bank, Brex could be a great option for you.
Pros of the Brex Card:
- No personal guarantee required: With the Brex Corporate Card for Startups, there’s no founder liability if the startup should fail – the applicant’s personal assets aren’t at risk. There’s also no requirement of providing a social security number or running an applicant’s credit. Instead, applicants provide an employer identification number and access to bank information.
- No annual fee or interest: There is no annual fee and no foreign transaction fees. Brex also doesn’t charge interest since the card is a charge card, meaning the balance is paid in full each month.
- Rewards for loyalty: If startups use the Brex card exclusively for their business expenses, they can be rewarded fairly well in select popular spending categories.
- Credit limit can rise with company cash flow: The credit amount initially provided on the Brex Card for Startups doesn’t remain the same. The company’s method of evaluating potential cardholders uses a number of factors, such as spending patterns and cash flows, to provide dynamic credit limits that increase along with a business’s repayment abilities.
Cons of the Brex Card:
- Need a minimum of $100,000 in the bank: If you’re a business without that kind of cash on hand, you probably won’t qualify for the Brex Corporate Card for Startups.
- Credit limit can fall with company cash flow: The credit model for Brex updates in real time. If a company’s cash flow decreases significantly in a given month, the credit limit on the card will be reduced until they have more cash in their bank account.
- Automatic debiting: Since the card isn’t a credit card, but rather a charge card, the balance is due in full each month. You won’t have to worry about owing interest, but you also won’t be able to carry debt from one month to another.
- Complex rewards structure: Bonus category tracking isn’t for everyone, and if you’re don’t want to commit to using the Brex card exclusively for your expenses, it may not be the best choice.
- Rewards may not fit your spending: If your business spending doesn’t align with the card’s elevated earning categories, you may want to consider a different option.
How Do You Use the Brex Card?
You can use the Brex card to earn points on every purchase you make, and redeem those points for airline travel.
1 – Earn Those Points
The Brex Card for Startups offers a reward structure that the widest range of corporations would find beneficial.
With this corporate card, you’ll earn:
- 7x on rideshare (including Lyft, Uber, Lyft, taxis,and more)
- 4x on travel booked through the Brex travel portal
- 3x on restaurants
- 2x on recurring software subscriptions
- 1x on everything else
2 – Redeem Your Hard-Earned Points
When Brex first started out, their points were worth 1 cent each, redeemable for statement credit or through their Brex travel portal. Now, though, Brex has added airline transfer partnerships to its rewards program, which dramatically increases the points’ value. At this time, Brex has partnered with seven airlines:
- JetBlue TrueBlue
- Singapore KrisFlyer
- Qantas Frequent Flyer Program
- Air France/KLM Flying Blue
- Cathay Pacific Asia Miles
- Aeromexico Club Premier
- Avianca LifeMiles
Brex points transfer to these airlines at a 1:1 ratio and these points can be transferred to any employee account. All three of the major airline alliances are represented by this list, making it that much sweeter for you and your team.
3 – Reap the Rewards
Brex doesn’t cap any of their bonus rewards, which is pretty unique for a credit card. Traditional small business cards cap annual rewards at around $150,000, which means more money for you to put back into your business.
Who is Brex For?
While most small business credit cards don’t require you to be a registered business in order to apply, this isn’t true for the Brex Card for Startups.
To get a Brex card, you will absolutely have to be open for business. Businesses also have to have at least $100,000 in a business bank account to qualify for the card, so make sure you have that cash before sending in your application.
The Brex Card is designed to meet the needs of businesses that are poised for scale, which means that if you don’t qualify for the startup card, it’s probably better to go with a small business card anyway.
The Brex Card for Startups is rather unique. The company has built it for a niche business group, and because of this, there aren’t too many similar alternatives out there.
There are a few other corporate cards on the market, such as the corporate card suite from American Express, ranging from the Corporate Green Card to the premium Corporate Platinum Card.
These are fine alternatives, but because they haven’t been designed specifically for startups, they simply don’t do the job as well. They also don’t really offer as generous of a reward structure or the same discounts for services as the Brex Card for Startups.
The Brex Card for Startups may be just what your startup business needs if you meet the company’s requirements. Sometimes, the standard small business cards just don’t cut it. And that is why Brex exists.
*Articles on this blog contain affiliate links that GMP receives a small commission from at no cost to you. We only recommend tools we trust. And never ones we don't trust.