|No personal guarantee required||Startup must be a registered business with an employer identification number, or EIN|
|No impact on your personal credit||Corporate bank account with a minimum of $100,000 required|
|Top-notch rewards||Must pay balance in full every month|
|No annual fee|
|Can use it to build business credit|
7 things to know about the Brex Card for Startups
1. Only for registered businesses with plenty of funding
First of all, the Brex Card for Startups is a corporate credit card.
To qualify, your startup must have a corporate bank account with a minimum of $100,000 in funds. Your company must also register with the IRS to establish an employer identification number, or EIN, in the U.S.
This potential barrier to entry is one of the biggest drawbacks of the Brex Card for Startups. If your startup is in its early stages, you might not be registered or have this much capital yet. In that case, there are other credit cards for startups that could suit your business better.
Also, consumers, sole proprietors and other unregistered businesses aren’t eligible for the corporate card.
2. No personal guarantee required
The Brex Card for Startups doesn’t require a personal guarantee from the founder. This is something that is very hard to find.
This means that unlike many business credit cards, you don’t have the added risk of being held personally liable for repaying the money your startup spends if it goes out of business. You also won’t lose your security deposit if that happens, because Brex doesn’t require one.
This also means the card won’t have any impact on your personal credit…….Read More>>