According to the company website, Brex is rebuilding B2B financial products — starting with corporate cards for technology companies. Brex aims to help startup companies of all sizes to get a corporate card that has a 20x higher-than-average cash flow credit limit, completely automates expense management, eliminates receipt tracking, and seamlessly integrates with accounting systems.
Brex was founded by Henrique Dubugras and Pedro Franceschi, the founders of Pagar.me — one of the largest payment processors in Brazil with over $1.5 billion in GMV.
Brex's corporate credit card suite is tailored specifically to three types of businesses: startups, e-commerce firms, and life science companies.
One unique aspect of Brex cards is the fact that they do not require a personal guarantee. Founders and business owners aren't personally liable for any fraud or risk when using a Brex card, because Brex acts as the underwriter on the card. Instead of using a personal social security number, Brex uses an employer identification number (EIN) — meaning the card won't affect the borrower's personal credit score. However, borrowers will need to keep in mind that it will affect their business credit score.
Brex also boasts that its customers have a higher spending limit than those with competing cards.
Signing up with Brex is a reasonably simple process, all users need to provide is some information about their company such as the company name, website, and type of company and link to their corporate bank account. With this information, businesses can get approved in just minutes; there is no personal liability, credit checks, or security deposits.
The Brex card is a 30-day charge card — meaning all expenses are consolidated over 30 days into one monthly payment. This payment is then deducted automatically from the company bank account. Charge cards are best for businesses that have the means to pay off their credit balance every month.
In order for users to qualify for Brex Exclusive, they must make their Brex for Startups or the Brex for Life Sciences card their exclusive corporate card for all of the business purchases. Brex for Ecommerce cardholders do not qualify for the Brex Exclusive program. New Startup and Life Sciences users are then automatically enrolled in the Brex Exclusive program at sign-up for the first two months. After the two months is over, users have to ensure card exclusivity to maintain Brex Exclusive's points multipliers. However, Brex points never expire and are uncapped.
Rewards include the following:
Brex Exclusive Startup Rewards
Brex Exclusives Life Sciences Rewards
Charge cards are an excellent choice for businesses with the means to pay off their credit balance every month; it's not the best choice for everyone. While charge cards can be used to help train users to develop budget management skills, it can also quickly get users into trouble.
Users who fail to pay off their charge card at the end of the month may face harsher consequences than those with a credit card — such as more damage to their credit score and higher penalties for missing a payment.
Additionally, users’ credit limits are based on the cash they have raised and/or the equity in the company, alongside the company's spending patterns.
While the first five corporate cards are included with no annual fee, Brex charges $5 per user per month for any additional cards. While it may not affect smaller companies as much, it can certainly affect larger companies with more employees.
Brex underwrites with EINs and not social security numbers, so unregistered businesses, sole proprietors, and consumers are ineligible for a Brex card. Only companies that are organized and registered in the United States, such as C-corps, S-corps, LLCs, or LLPs can apply.
Additionally, companies that engage in the following activities will not be able to apply for a Brex card: