San Francisco based credit card startup, Brex, was last year valued at $1.1 Billion. It is just a little over 2 years old and has already revolutionized the market. Last year, the company launched the Brex Card for Startups – a corporate card without a personal guarantee requirement.
Now, on February 26, Brex launched the Brex Card for E-commerce, which offers a 60 day, interest-free credit line, with limits ranging from tens of thousands to millions of dollars. “Those limits will be three to five times higher than traditional corporate cards,” CEO Henrique Dubugras says.
“The Brex Card for E-commerce was designed specifically for online businesses with at least $50,000 in monthly sales that need longer payment cycles than the 30-day window offered by the Brex Card for Startups,” says Michael Tannenbaum, Brex’s Chief Financial Officer, in an email to NerdWallet. “Brex saw lots of e-commerce companies signing up for its startup card (the Brex Card for Startups) but asking for longer payment terms to coincide with their ad financing and inventory financing cycles.”
The Brex Card for E-commerce offers:
- No founder liability: If the business fails, a creditor can’t go after the applicant’s personal assets. This a major advantage in the rather risky market.
- Potentially available to someone with a thin credit profile: There’s no personal credit check required to avail this card.
- Revenue-based credit limit: Unlike traditional business credit cards that typically issue set limits, the Brex cards use dynamic models to determine your company’s credit limit. In the case of the Brex Card for Ecommerce, the credit limit is based on 50% to 100% of projected monthly sales, extending up to $5 Million for qualifying companies.
- No annual fees, foreign transaction charges or interest charges: Both cards offered by Brex are considered charge cards, meaning you’re expected to pay your bill in full within 30 days for the Brex Card for Startups and within 60 days for the Brex Card for E-commerce.
- Virtual credit issued quickly once approved: Once you’ve completed the application and granted Brex access to your company’s financial information, upon approval you’ll get a virtual number that you can use immediately, with a physical card to follow.
- Discounts and deals on several popular platforms: Although there’s no traditional sign-up bonus on the Brex cards, cardholders will get preferred pricing on certain services such as Amazon Web Services, WeWork, Google Ads, Salesforce, Twilio, Caviar, Instacart, Zendesk, Snapchat, Expensify, and Carta.