Brex Review: Business Credit With Rewards

Brex is a corporate card designed specifically for startups and companies that work in eCommerce, tech, or life sciences. Unlike other business cards, qualifying business owners are not required to personal guarantee the debt on the Brex card.

This means that Brex gives business owners the ability to protect their personal credit score while building their business credit. Additionally, Brex boasts a blazing fast application process, competitive rewards, and no annual fee.

However, business owners who don’t have a lot of money in the bank may struggle to meet this card's eligibility requirements. Keep reading our full Brex review to learn more about what it has to offer and to decide if it’s the right business card for you.

Who Is Brex?

Brex is a B2B financial services company. It was founded by Henrique Dubugras and Pedro Franceschi, who also founded Pagar.me. Some of its investors include Y Combinator, SV Angel, and Peter Thiel.

The company launched the Brex card in June 2018. The Brex card is issued by Emigrant Bank, Member FDIC. Brex uses the Mastercard network, which means your card will be accepted worldwide.

What Do They Offer?

Brex is a corporate card that provides businesses with working capital and gives them an opportunity to build their credit. To apply for the Brex card, you’ll need to have an EIN. And your company will need to be formed as a C-corp, S-corp, LLC, or LLP.

It should be pointed out that the Brex card is a charge card, not a credit card. This means that you will not be able to carry a balance. Your entire statement balance must be paid in full at the end of each statement period. For Brex, that’s 30 days. Brex also offers eCommerce businesses a line of credit that offers interest-free, net 60 terms.

No Personal Guarantee Requirement

Any business owner who has applied for a business credit card knows that their personal credit is usually checked and the amount of credit is based on their personal credit history.

But with Brex, a personal guarantee is not required if your company is a startup, tech, life sciences, or eCommerce company. Instead of basing their approval decision on your personal credit history, Brex’s underwriting focuses on your business’s cash balance and sales.

Applying for the Brex card will not affect your personal credit score. But as you make on-time payments with the card, it can help you build up your business credit. Brex will report your on-time payments to Experian and Dun & Bradstreet.

Application Process

Brex is targeted at startups that are well funded. If you have professional investor backing, here are the bank balances that you’ll need to maintain to qualify for the card.

• $50,000 if you connect your bank account
• $100,000 if you don't connect your bank account

All businesses that are self-funded must maintain a bank balance of at least $100,000 at all times. The Brex credit application process can be completed online and within five minutes. This is in contrast to most business credit card applications, which are generally longer and require more time to approve.

Receipt Matching

Keeping track of receipts can be a cumbersome process. Brex solves this problem through its mobile app. Transactions from your card display in the mobile app. You can also enter paper receipts into the app by taking a photo of the receipt.

AI in the app will recognize receipts and match them to expenses. It also integrates with QuickBooks®, NetSuite®, Expensify®, and Xero.

Brex Rewards

In addition to not requiring a personal guarantor and no annual fee, Brex provides a rewards program. Its rewards are points-based, and there isn’t any cap on the points you can earn. Some categories have higher point multipliers than others:

• 7X — rideshare (Uber, Lyft, taxi, and scooters)
• 4X — Brex Travel (flights & hotels)
• 3X — Restaurants (dining & coffee shops)
• 2X — recurring software
• 1X — everything else

To get an idea of what your savings will look like, if you spend $10,000 per month, spread evenly across all five categories, your rewards value will total $340 for the month and $4,080 for the year.

Brex travel rewards can save you around 30% and up to 60% on some bookings. It’s worth mentioning that this card does not include TSA pre-check fee waivers, first checked-bag free, or any special boarding privileges that are common on travel cards that charge an annual fee.

Brex is also offering a 50,000-point sign up bonus for startups and for eCommerce businesses. New cardholders only need to spend $1,000 on the card to earn the bonus. However, to qualify, your business will need to maintain a bank balance of at least $100,000.

Customer Service

Customer support is available seven days a week from 5 am - Midnight (Pacific Time). You can contact them at [email protected] or (833) 228-2044.

Are There Any Fees?

Brex doesn’t charge any annual fees or foreign transaction fees either. The first five credit cards are free. But, thereafter, it will cost $5 per month for each employee who needs their own card. 

How Do I Open An Account?

You can open an account online at https://brex.com. Brex says the application only takes a few minutes. If you're approved, you can begin using your virtual card right away and your physical cards should arrive within 3 to 5 business days.

Is My Money Safe?

Yes, Brex uses bank-grade encryption on its website and mobile app. It also has full protection against unauthorized charges. Support is available by phone, chat, or email to resolve any issues.

Is It Worth It?

If you qualify for the Brex card, it has a lot to offer. You get the benefit of a corporate card without the danger of having to put your personal finances and credit score at risk. Plus, there’s no annual fee and the rewards program offers a good value.

However, many small business owners won’t qualify for this card. The $100,000 bank balance requirement for startups that don’t have professional investor backing will be a deal breaker for many freelancers, side hustlers, or solopreneurs.

If you don’t meet the Brex card eligibility requirements, you can still apply for a small business credit card. Since a personal guarantee is typically required with these cards, a strong credit score is often required.  But, on the upside, many small business credit cards offer fantastic rewards. Here are the top small business credit cards.

Brex Features