Startups looking for a flexible e-commerce credit card might want to explore the Brex Corporate Card for Ecommerce. Credit scores aren’t required for this card, and business owners don’t need a personal guarantee. Approvals come from sales and capital, and business owners can link the card to their corporate bank accounts. Further, approval is fast, and money is then available on a virtual card while cardholders await the physical cards to arrive by mail.
Brex is an innovative company disrupting traditional credit card application methods. Started in 2018, founders Pedro Franceschi and Henrique Dubugras were struggling to find a credit card for their own startup. Hence, they created the business to help startups access the capital they need.
Because it’s a charge card and not a credit card, cardholders pay their balances in full. This can be a deal-breaker for business owners who prefer to make smaller payments each month. However, it’s designed for startups who need access to cash and don’t want to hinder business growth due to a lack of capital.
The Essentials of the Brex Corporate Card for Ecommerce
- Annual Fee: $0
- Introductory Bonus Offer: 30,000 in Brex Rewards points upon signup and waived card fees for life ($300+ value in the first year)
What’s Interesting about the Brex Corporate Card for Ecommerce
The Brex Corporate E-commerce Card has several generous benefits for business startups. These include a credit limit of 50% to 100% based on monthly sales (up to $5 million). Additionally, business owners don’t need a personal guarantee like a security deposit or credit check. Best of all, their credit isn’t affected when they apply.
Account holders will reap a number of bonuses just for having the card. They’ll receive $150 credit for Google Adwords and 15% off office space for six months at WeWork, a nationwide coworking venue. As if that wasn’t enough, they also get 20% off a one-year Carta subscription and 25% off a Salesforce subscription. Other perks include access to Xero, Expensify, Oracle NetSuite, and Quickbooks for expense management.
If the cardholder is having any problems, customer support is available 24/7 via voice, chat, and email. Employees can reconcile with automated receipts and use expense matching through email and text. Reporting is through Experian and Dun & Bradstreet to help build credit, and cardholders are not liable for unauthorized transactions. Accounts are secure and include fraud monitoring in real-time. Additionally, there are no interest or foreign transaction fees.
Things to Consider
Business owners need about $100,000 in monthly sales to meet eligibility requirements. They should also have about $100,000 in the bank when applying. Approval factors include cash balances, investors, and spending history of the company. Additionally, they will need their LLC or a similar legal entity, meaning that sole proprietors may not be eligible.
Cardholders need to remember this is not a credit card with payments spread out over time. For example, if they have a charge for $5,000 on February 20 and a charge for $3,000 on February 22, they’ll owe $5,000 April 22 and $3,000 on April 24.
How to Get the Most from this Card
To maximize benefits with this card, cardholders might consider switching to a net 30 instead of net 60 for bill repayments. They will then starts to earn 1x points for every $1 in purchases, which can add up over time.
Cardholders should also use their coupons and credits to increase savings. For example, the Salesforce subscription can save companies up to $375. Some of the other subscriptions might cost $25 monthly to over $300 depending on the business.
The $150 in Google Ads can run out quickly for businesses not familiar with keywords. To stretch the credits, test different setups like keywords and products and try to find a few profitable combinations. Then, when the credits end, the business can use the existing campaigns.
Other Card Options that Might Interest You
Another credit card with cashback rewards is the Brex Corporate Card for Startups. The introductory bonus is 30,000 points, and cardholders have fees waived for life. They can earn 7x points for rideshares, 4x points for travel, and 3x points for restaurants, which makes it a great card to use for common business expenses. They also earn 2x points for software purchases and 1x points for general purchases.
Another card is the Ink Business Cash Credit Card from Chase. Cardholders have a 0% APR for a 12-month introductory period that switches to a variable APR of 14.74% -20.74%. Cardholders earn a $500 introductory bonus when they spend $3,000 in eligible purchases within the first 90 days. They earn 5% cashback on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. They also earn 2% cashback rewards on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year, along with 1% cashback rewards for general purchases.
The Final Word
With no credit check or security deposit required, the Brex Corporate Card for Ecommerce allows startups to access money based on projected monthly sales. The card includes lucrative incentives from Amazon, Salesforce, Carta, and Google Adwords. Through these partnerships, cardholders can access integrated expense management software. Additionally, there’s no annual fee, no interest rate, and no foreign transaction fees. Cardholders earn 1x rewards for every $1 spent if they switch to a net-30 billing cycle.
Unfortunately, not every business is comfortable with 30- or 60-day billing cycles. Hence, a traditional credit card might be a better option for some. Despite this, for established businesses with their LLC, Brex has a convenient credit card model that can help them grow and scale over time.