Brex Credit Card For Business & Startups Credit Card Review

Brex Card for Startups Review

Let’s talk about the Brex for Startups, which is a corporate charge card for startups.

Brex Card for Startups: pros and cons

Rewards system in a nutshell

The rewards system of the Brex for Startups is shaped in a way that rewards companies while they adapt to the new working-from-home-economy. Companies can expect substantial bonus points for purchases they make on team communication tools and food deliveries.

Note that the below-listed bonus rates are only valid if you use Brex Cash for your daily card payments.

The specific bonus rates for several categories are:

• 8x points on team communication tools, such as Zoom, Slack, Gong, and others;
• 4x points on food delivery, including Uber Eats, DoorDash, Caviar, Seamless, and Grubhub;
• 3x points on recurring software like Salesforce and Zendesk, and eligible Apple products;
• 1x point on all other purchases.

Their rewards scheme is one of the first that is oriented towards remote work. We praise them for their reinventing and fast response to the pandemic.

As for monthly payments, the bonus rates are 1x lower (except the 1x point on all purchases).

Brex has an Exclusive Rewards program and companies with good financial health, that have chosen Brex as their exclusive corporate card can qualify for it. If they do, and they use Brex Cash for payments, they’ll get a 1x point plus on the categories above.

And, it doesn’t end there! Brex also offers additional partner perks and they claim the total value to be $150,000. Among others, these include:

• 25% off 12 months of eligible Slack paid plans;
• 20% discount on the annual Zoom subscription;
• 50% off on all Dropbox Business, Standard, and Advanced plans;
• $5,000 credit and up to $100,000 in Amazon Web Services.

Lastly, you can earn 20,000 points if you link payroll to Brex Cash and 10,000 points if you spend $3,000 in three months, with your Brex Card.

There is no minimum redemption amount and the rewards never expire. Plus, there are no caps on your earnings, as your business grows and spends more, your Brex rewards grow with it. Several options are available to redeem your points:

• Redeem for cash – you can either apply your rewards as a statement credit or if you have Brex Cash, you can redeem for cash back directly on your account;
• Brex Travel – you can use your points to book flights and hotels through Brex Travel;
• Miles – transfer your points to flight miles with a 1:1 ratio;
• Gift cards – buy gift cards with your points.

Who can benefit from getting the Brex Card for Startups?

You have the answer to this question in the card’s name – Brex for Startups. Still, it’s more complicated than that. This card was obviously intended for tech startups and they get the most out of its value.

However, not just any tech startup. The interested companies will have to allow access to their bank information, and the requirement is to have at least $50,000 on their bank accounts. Additionally, they also have to pay off their card in full every month. Clearly, the card is for already established and well-funded startups.

It is ideal for young entrepreneurs that maybe have little or no credit history. This won’t affect the creditworthiness of their business. Instead, Brex evaluates the business, its balance, equity, spendings, and investors.

If you don’t think your business will show high-growth right away and you are unsure whether you’d be able to cover your balance every month, this is not the card for you.

To sum up, this card is a good choice for startups with sufficient funds and founders who don’t want to bear the risk of a personal guarantee shall the business come to an end. We should also mention that this card is not for consumers, sole proprietors, and unregistered businesses.

Are there any other benefits?

Yes, some additional benefits include:

• Virtual cards – you can create virtual cards for your whole team. The virtual Mastercard has similar features as the physical one, but it can’t be used on ATMs;
• Brex Travel – enjoy many travel perks, 24/7 concierge service among many;
• Business Management – your transaction data is automatically transferred to the system and you can attach receipts to the matching expenses. There are also several tools that will make your job easier, like QuickBooks, NetSuite, and Xero.
• Fraud Coverage – a pretty basic feature, you won’t be responsible for any unauthorized payments made with the card.
• Brex Cash – with a Brex Cash account you can send ACH and wire transfers (even internationally) for free and you can get paid immediately for any e-commerce sales.

Conclusion

We applaud Brex on its innovative concept for business cards. It’s great that they got rid of the rule to assess the founder’s credit health, and instead focused on the business’ credit and potential. For example, this could prove a good opportunity to young graduates who have a great idea and enough money to make it a reality, but not enough credit history. Not having to put their own financials on the line is an advantage.

Its rewards program is unmatched in the industry of corporate cards, and we like that the credit limits grow with your business. So, if you recognize your business in the targeted audience, you should go for it and see for yourself if this card matches your business’ needs.