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Starting a new business isn’t for the faint of heart. You know the importance of making good business decisions to turn your startup into an established business. The Brex for Startups Credit Card can be one of the best decisions you make this year.

Brex for Startups Credit Card
Is the Brex for Startups Credit Card right for you? Photo by cottonbro from Pexels

This card can give you access to more credit with fewer strings attached. For example, the Brex Card for Startups doesn’t require a personal guarantee. Plus, you won’t pay an annual fee while earning up to 7x points on select purchases. However, note that sole proprietors aren’t eligible for the corporate card.

Let’s see if this is the best business credit card for you.

Brex for Startups Credit Card Review

The Brex for Startups Credit Card earns up to 7x points per $1 on purchases. Your points can be redeemed for cash statement credits, booking travel, or transferring to airlines. There is no annual fee or foreign transaction fee. Also, the Brex Card is a Mastercard World Elite with near-universal acceptance.

Brex for StartupsSignup Bonus

The current Brex Card signup bonus is the ability to earn 50,000 Brex Rewards points when you sign up before January 31, 2020, and you spend $1,000 with Brex. However, you must have a minimum of $100,000 in your bank balance to qualify.

Brex also partners with various online retailers to provide an exclusive signup offer worth more than $25,000. There isn’t a minimum spend requirement. But, the more offers you enroll in, the more you can save.

Some of the offers include:

  • Google Ads: up to $150 credit
  • Amazon Web Services: $5,000 credit over one year
  • Zoom: 20% discount on an annual subscription
  • Clear Channel Outdoor: 10%+ discount on your first outdoor advertising campaign

Even after the first year, there can still be more offers to keep saving money.

Earn Up to 7x Points on Purchases Rewards

You will earn up to 7x points per $1 on every purchase:

  • 7x points on rideshares
  • 4x points on Brex Travel purchases (airfare, hotels, and Airbnb stays)
  • 3x points on restaurants
  • 2x points on recurring software subscriptions
  • 1x points on everything else

To earn these tiered rewards, you will need to make the Brex for Startups Credit Card your exclusive business credit card. This means putting two-thirds of your business spending on your Brex Card to fully maximize rewards. Otherwise, you only earn 1 point per $1 for all purchases.

Note that the Brex credit card is one of the best credit cards for startups.

Redeeming Brex Rewards Points

You can redeem your rewards points for cash or travel rewards. A third redemption option is transferring them to a travel transfer partner similar to Chase Ultimate Rewards or the American Express Membership Rewards.

Cash Statement Credit or Book Future Travel

Each point is worth 1 cent each when redeemed for a cash statement credit or booking upcoming travel in the Brex Travel portal.

Travel Transfer Partners

A potentially more valuable redemption option is the Brex airline transfer partners:

  • AeroMexico
  • Air France KLM FlyingBlue
  • Asia Miles
  • Avianca LifeMiles
  • JetBlue
  • Qantas
  • Singapore Airlines

The transfer ratio is 1:1 for Brex Exclusive members. If this isn’t your primary business credit card, the transfer ratio is 1.5:1 which means you need to transfer 1,500 Brex points to get 1,000 airline miles.

This is the better option when your points are worth at least one cent each booking award flights directly through the airline. As most frequent flyer miles are worth at least 1.5 cents each, this is the case more often than not.

Additional Brex Card Benefits

Your Brex for Startups Credit Card can also make it easy for your team to track its business purchases:

  • Submit receipts via text, email, or the Brex app
  • Set spending limits and track purchases for additional employee cards
  • Integrates with QuickBooks, NetSuite, Expensify, and Xero
  • Automatic monthly withdrawals to pay the statement balance
  • No preset spending limit

Brex automatically consolidates your team card purchases every 30 days to determine your statement balance. Then, one monthly payment deducts from your linked banking account. Your payments are reported to the Dun & Bradstreet and Experian business credit bureaus.

Brex Cash

Another perk of being a Brex member is access to Brex Cash. This online cash management account is opening soon. It’s fee-free and you will be able to send ACH and wire transfers for free too.

Card Fees

You won’t pay an annual fee or foreign transaction fee. As the Brex Card is a “charge card” like the Business Platinum Card from American Express, you don’t pay interest charges. However, it’s expected that you pay your balance in full every month.

Brex for Startups Credit Card Application Guidelines

To apply for a Brex for Startups Credit Card, you will need an Employer Identification Number (EIN) and at least $100,000 in a business bank account. Unlike most business credit cards, you can’t apply if you only have a Social Security Number. This means Brex won’t use your personal credit score to make an application decision. Instead, they will look at your business credit score.

Brex also requires your business to be organized and registered in the United States. Examples of qualifying business types include C-Corp, S-Corp, LLC, and LLP. If you’re currently a sole proprietor or unregistered business, you will need to change your business tax filing status.

Remember, sole proprietors aren’t eligible for the corporate card.

Having an EIN helps show Brex that you are a legit business. Because Brex only accepts applicants with an EIN, Brex never uses your personal credit score in the approval process. If you don’t have an EIN, you can apply for free online on the IRS website.

No Personal Guarantee

Brex doesn’t require a personal guarantee if you carry a card balance. Most business credit cards have a personal guarantee where they can use your personal assets to repay a card balance if you default.

When Brex approves your application, your card spending limit is based on how much cash is in your business bank accounts. You won’t pay a security deposit either. According to Brex, their average credit limit is up to 20 times higher than a standard corporate credit card. 

Virtual Card Number

Once approved, you will receive a virtual card number you can start using for purchases immediately. You can also get additional employee cards free of charge. The physical card will arrive in the mail within 5 business days.

Brex Exclusive Member

To get the most from your Brex for Startups Credit Card, you will need to make this your exclusive business credit card. This means putting at least 2/3 of your business purchases on this card. Doing so, means you earn up to 7x points on purchases. And, you can transfer your points at a 1:1 ratio (instead of 1.5:1) to select airline loyalty programs.

Whether or not, this becomes your only business credit card, you will never pay an annual fee or foreign transaction fee.

Pros

  • Earn up to 7x points on select purchases
  • Redeem for points for cash or travel rewards
  • Exclusive business partner offers
  • No annual fee or foreign transaction fee
  • Doesn’t affect personal credit score

Cons

  • Need an EIN and at minimum $100,000 bank account balance to apply
  • Must be your exclusive business credit card to earn tiered rewards
  • Limited airline transfer partners

Summary

If you’re an incorporated startup or tech company, the Brex for Startups Credit Card is a very attractive option. Being able to earn up to 7x points on purchases and the exclusive partner offers help maximize building your brand. Not affecting your personal credit is another advantage of using this card.

Learn more: Brex for Startups Credit Card

FAQs

How do you qualify for Brex?

It’s free to join Brex although you will need an Employer Identification Number (EIN) and at least $100,000 bank account balance. Also, you must have an incorporated business type like S-Corp, LLC, or LLP. Sole proprietors (even with wan EIN) cannot get a Brex for Startups Credit Card.

Once you join, Brex will determine which Brex credit card is best for you. Brex offers four different business credit cards and will recommend one that best matches your purchase habits.

Can a startup business get a credit card?

Yes. One of the best credit cards for startups is the Brex for Startups Credit Card. It doesn’t have an annual fee or foreign transaction fee. It earns up to 7x points per $1 on purchases. Points can be redeemed for cash and travel rewards.

If you’re still a sole proprietor or don’t have at least $100,000 in a business bank account you won’t qualify for a Brex Card. Instead, consider getting a card from a national bank like:

However, these cards require a personal guarantee and affect your personal credit score.

How many points does the Brex for Startups earn on purchases?

The Brex for Startups Credit Card earns up to 7x points per $1 on purchases:

  • 7x points on rideshares
  • 4x points on travel bookings through Brex Travel
  • 3x points on restaurants
  • 2x points on recurring software
  • 1x points on everything else

If Brex for Startups isn’t your exclusive business credit card, you only earn 1x point per $1 on purchases.

Each point is worth 1 cent each as a cash statement credit or booking upcoming travel on Brex Travel. You can also transfer your points to select airline loyalty programs. It’s a 1:1 ratio for Brex Exclusive members and a 1.5:1 ratio when Brex isn’t your exclusive business credit card.

Does Brex for Startups have a personal guarantee?

No. The Brex for Startups credit card doesn’t require a personal guarantee like most small business credit cards. This is because Brex doesn’t access your personal credit report to make an application decision. Also, Brex only reports your payment history to business credit bureaus. They are Experian (business-side only) and Dun & Bradstreet.

Josh Patoka
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