No personal guarantee required for BREX business cards

Finding a business credit card that doesn't require entrepreneurs to personally guarantee debt is like finding a parking spot at the mall on a rainy Saturday. You have options, but they're either unattractive or just not a good fit.

However, a company called brex has created a corporate card for startups that reject traditional underwriting methods. Rather than evaluating applications based on the business owner's personal credentials, we focus on other numbers such as revenue, funding, expenses, and size.

“It starts with technology,” says Michael Tannenbaum, Brex's chief financial officer.

Brex says it can issue cards faster and with higher limits than other options without a personal guarantee.of brex card operates on the Mastercard network, has no annual fees or foreign transaction fees, and allows cardholders to earn benefits.

Brex focuses on emerging or early-stage companies and currently only accepts applications from venture-backed mid-sized companies. Here's how it differs from other cards in this category:

• There are no personal guarantees. A personal guarantee requires the applicant to assume personal responsibility for business debts, such as credit cards. If the business goes bankrupt, creditors may pursue the applicant's personal assets.with brex cardIf the business is not successful, the founders are not responsible.

• Your personal credit score is not a factor. Brex determines a company's creditworthiness by evaluating its cash flow, spending patterns, and financial backing, rather than the applicant's own credit history.

• You do not need to enter your social security number. of brex card Businesses must provide basic details such as an employer identification number and access to banking information. If your application is approved, you'll receive an answer within minutes, a ready-to-use virtual card, and a physical card in the mail within a few days.

• BREX is a charge card, not a credit card. This means you have to pay your balance in full each billing cycle, and you can't carry debt from one month to the next. The advantage of this is that no interest is charged. Disadvantages: You can't stay in debt for long. Your balance will be automatically debited to your account, so you must have sufficient resources on hand.

• Credit limits may be higher than what you can get elsewhere. Brex's website says credit limits are based on factors such as a company's funding and spending patterns. Tannenbaum said Brex's method of evaluating potential cardholders allows it to offer dynamic credit limits that increase based on a company's cash flow. “What we don't do is take your FICO score or look at other data and say your limit is $10,000 and if you need more, contact us or “We'll check back in a year to see if we can offer you more,” Tannenbaum says. “That static concept is not what we do.”

• It limits your ability to overspend. Brex's credit model updates in real time, so if a business runs out of most of its cash in a given month, the credit limit on its card will be reduced until it has more cash in its bank account. “We monitor cash in the bank, so we always know if our customers are able to pay,” Tannenbaum says. He points out that it's rare for a company to charge a high percentage of net worth on a card that can't hold a balance.

Tannenbaum said Brex fills a specific market niche. This is a good choice for entrepreneurs with high-growth venture-backed companies and weak or non-existent credit history.

Companies that are likely to meet these conditions are brex card Includes things like:

• Be willing to pay your card in full within 30 days using direct debit.

• I'm comfortable giving Brex access to view my company's bank accounts and other financing information.

• Access to expensive lines of credit may be required.

of brex card It may not be suitable for you or your company if:

• A sole proprietorship or a one-person shop whose cash flow is not very high.

• Small businesses that do not spend on the reward categories offered by Brexit. (See below for details.)

• Business owners who need a card that offers luxury travel benefits.

Brex's special benefits program Eligible cardholders can earn points on purchases. The people who make the brex card The company's only corporate card lets you earn great rewards at the following rates:

• You get 7 points per dollar spent on rideshares and taxis.

• You'll earn 4 points per dollar spent on travel booked through the Brex portal.

• 3 points per dollar spent at restaurants.

• Earn 3 points per dollar spent on Apple products purchased through the Brex Dashboard.

• 2 points per $1 on recurring software costs.

• 1 point per dollar on all other purchases.

Those who choose to use the brex card When used with other cards, you'll earn a flat rate of 1 point per dollar on all purchases. Rewards can be redeemed as statement credits for transactions made on your card at a value of 1 cent per point.

According to the company's website, Brex uses information provided by customers to determine eligibility for benefits programs through third-party providers that customers have authorized to provide Brex bank account information.

There is a sign-up bonus: Earn 10,000 points after you spend $3,000 on your Brex Card within the first 3 months. Brex also offers perks and discounts for cardholders at a variety of vendors that may be attractive to startups, including Amazon Web Services, WeWork, Google Ads, Salesforce, Twilio, Caviar, Instacart, Zendesk, and Snapchat. Masu.

If you fit the profile, there are few business cards that offer so many perks and perks without an annual fee. brex card that's right. However, business cards aren't right for every business owner, and other options may be better suited to your spending patterns.

To view rates and fees Blue Business® Plus Credit Card from American Expresslook This page. To view rates and fees American Express Business Platinum Card®look This page.