Brex is here to stay. The new issuer has already garnered plenty of attention with a lower barrier to entry for younger businesses than other business credit card issuers, and they’re not done yet. Brex recently added a welcome offer for their , giving cardholders 50,000 points for spending just $1,000.
For growing businesses, the Brex card is a welcome change to the business card industry that would otherwise leave them on the sidelines. Because it’s a charge card, not a credit card, Brex’s underwriting process is different than what you may find elsewhere.
Brex doesn’t require a Social Security number to be approved, allowing business owners to apply with just their EIN (employer identification number) and doesn’t require a personal guarantee — a rare find in the business credit card space. With a requirement of only one year in business and an underwriting process that focuses on the health of the business, Brex should already be on startups’ mind, but now there’s another reason to get excited.
Details on the New Welcome Offer
The now offers a welcome offer where there wasn’t one before. Now, you can earn 50,000 points after spending $1,000. Brex has always offered points as part of their reward structure, but the welcome offer puts them fully in contention with other popular rewards cards on the market.
This welcome offer is also aimed towards younger businesses, with a low $1,000 threshold. By using your Brex card for everyday purchases, you could reach those 50,000 points in a jiffy. Keep in mind that Brex is a charge card, not a credit card, so your balance will need to be paid in full each month.
Your positive payment history will be reported to two of the business credit bureaus (Experian Business and Dun & Bradstreet) and can help you build a strong business credit profile over time. (You can check your business’s credit standing for free with all three major business bureaus at Nav.)
A Brex Advantage: High Credit Limits
Another perk well worth mentioning is the much higher credit limits Brex offers applicants. Brex requires that applicants have $100,000 in the bank, and, where other business credit cards extend credit lines that are closer, on average, to $10,000, Brex may extend a limit anywhere from $20,000 – $50,000, depending on the approval process.
Brex has a very holistic underwriting process that reviews the overall health of your business. If you’re performing well, a relatively low time in business might not hold back your credit limit like it would elsewhere.
Keep in mind, again, that this is a charge card. Whatever balance you incur during a billing cycle will be debited, so be sure you have the funds on hand to cover it. If you don’t, negative activity can and may be reported to both consumer and business credit bureaus. If you’re curious what your current business credit cards are reporting back to consumer and business bureaus, you can check up on them with Nav.
If you’re strong on cash flow but lacking on time in business, the Brex card has something to offer you. With a shiny new welcome offer and the potential for a higher credit limit, this could be the tool your business needs to take that next step. You can read our full review of the Brex card here.
This article was originally written on November 7, 2019 and updated on November 11, 2019.