Marketed as the smartest corporate card for businesses, Brex is a business credit card that markets itself well outside of the industry standard. With no personal guarantee required and near-instant approvals, start-ups and small businesses looking for a credit card may well be swayed by all the benefits. But is the Brex Business Credit Card the solution it claims it is? We take a closer look at the corporate credit card, so you don’t have to.
From its suitability for its target audience to its functionality for travel and the availability of this card to businesses, we take a look at all the pros and cons of the Brex Business Credit Card. Making an informed decision has never been easier. Read on now to find out more about why Brex might be the best fit for you as an entrepreneur:
What is Brex Business Credit Card?
Brex Business Credit Card is a niche product aimed at start-ups and small-scale corporate business, though they’ve recently expanded into a wider market based on their current marketing. With a focus on emerging companies, businesses are offered a whole host of benefits that come as standard for larger organizations but aren’t accessible at their current level. While Brew describes itself as a Corporate Card, this doesn’t translate to a credit card in the traditional sense. Instead, it functions as a kind of charge card that must be paid in full within the monthly billing cycle.
Founded in January 2017, Brex has since gone on to become a popular choice for many small businesses, offering them increasing flexibility where other credit lines cannot. Brex utilizes Mastercard technology for their business credit cards, which means added functionality outside of the workplace. The company also uses a rewards feature to provide extra incentives to customers as opposed to cashback – which we’ll go into further detail about below in our advantages section.
When and Where is Brex Business Credit Card Available?
Brex Business Credit Card is currently a US-exclusive service in partnership with a big-name brand Mastercard. For businesses within the specific catchment area, applying for a Brex Card is easy. All you need to do is visit the Brex.com website, fill in all the details, and await approval. As for who is approved, that depends specifically on the cashflow within your business.
Unlike other corporate cards, Brex doesn’t take your personal credit score in to account when you apply. Instead, it calculates your suitability based on the spending and cash within the business itself. At the lowest end, companies must have $50,000 or more in sales or their account each month to be considered a candidate. According to Brex, their target audience is companies with between 50-200 employees, though there is some wiggle room for larger businesses – and potentially smaller, highly profitable ones.
Is it suitable for travel?
As your typical Mastercard solution, Brex Business Credit Card is suited to travel just like any other credit card on the market. If you can swipe or tap there, it can be used. However, it’s worth noting that as a charge card, all travel costs must be paid within that billing cycle – so if you’re looking for a longer time to shift the cost of an annual conference or overseas pitch, then Brex Business Credit Card might not be the one for you.
What is the credit limit?
As with the vast majority of credit cards, no one credit limit is provided for all customers. Even more, this is the case when it comes to corporate cards, where vast differences in cash flow and income can be seen from business to business. Your credit limit is decided based on several factors, including the scale and cash within your business – and there is the option to up your credit limit should you experience growth following your initial calculation.
What cashback is offered for the Brex Business Credit Card?
While many corporate credit cards use cashback as a significant incentive, Brex Business Credit Card instead offers an Exclusive Rewards program – a limited-service designed for companies that meet their specific criteria. Upon signup, eligible businesses will receive 30,000 in Brex Reward Points, which can be redeemed in several ways. The company can either use these points to pay for travel booked through the companion Brew Travel service or choose to redeem points for statement credit.
In general, one point equals one cent – so 30,000 equates to around $300 worth of credit, which is very handy for any business just starting out with corporate cards. There are also multipliers to support enterprises in gaining Brex Rewards Points, including 7x on rideshares and 3x on restaurants, and 2x on SaaS and software. For all other purchases, 1x points are on offer. To be eligible for this rewards scheme, Brex requires businesses to make their credit card service their primary business card.
Are there any other advantages to applying for Brex?
Alongside their Brex Rewards Points system, there are plenty of other benefits to signing up for Brex Business Credit Card. The financial service offers a range of incentives from $5,000 towards Amazon Web Services to 15% off WeWork, and even 25% off Salesforce – all attractive prospects to a growing business. The list is continually changing, so it’s well worth taking a look at what’s currently on offer on the Brex.com website before you sign up.
Is Brex Business Credit Card worth it?
In the simplest of terms, Brex is a fully-fledged Business Charge Card, rather than the credit card it’s described as that offers advantages to small businesses that they may otherwise not have access to. When you look at it like that, it’s a highly attractive option for many entrepreneurs with the funding, but not quite the size, to expand their business and take the next steps into corporate finance.
But is it suitable for most businesses? The lack of immediate cashback and the stipulations for the Brex Rewards Points system are some of the factors that give us pause. Brex has a particular audience it wants to target, but for growing businesses, a proper line of credit is vitally important. If you aren’t willing to pay all expenses each month, then Brex might not be the best fit for you. Brex is already gaining momentum in specific markets, but it’s not always the right call when it comes to appealing to the broader corporate demographic.