Brex just announced a big change, and it may leave some of their customers in a bit of a bind. Basically, they are only serving startups going forward. For many small businesses, their Brex account is being closed.
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New Brex Account Requirements
Now, only companies meeting the following requirements can get a Brex account:
- Provide or have plans to provide services and products to US customers
- Currently employ or contract with US personnel, or have plans to do so in the future
- Has professional investors like venture capital backing or private equity
What Does this Mean for Brex Small Business Customers?
How Long Do You Have?
First, those companies that do not meet these requirements have until August 15, 2022 to find a new money management company. After that, a Brex account becomes inactive.
Brex will continue reporting open company accounts to the business credit reporting bureaus. So, if you are using it to build stronger business credit, that will still be an option until 8/15.
What Can You Do To Keep The Brex Decision from Stalling Your Growing Company?
There are alternatives that offer many of the same services to companies. They also tend to have competitive pricing. You just have to find the right one for your company.
Just like Brex, they offer cards for your employees and will also help you build credit for your company by reporting to the business credit reporting agencies.
This is Not The End
This is an unfortunate turn of events for companies that do not meet the new Brex requirements.
However, your business can still be successful and reach its full potential. There are other options for managing card spend, simplifying the accounting process, and managing worker expenses.
Options for Brex Replacement
Take advantage of the time Brex has given over the next few months and start the migration process now. Here are some options.
Divvy is perhaps the most similar to Brex in process and mission. They offer many of the same options for spend management as Brex.
The system allows you to see transactions in real time, and send funds in seconds via mobile or desktop.
Like Brex, they also allow companies to issue cards to employees. They have both a virtual card option and a physical option.
These give those working for you direct access to funds with a spending limit you set. As a result, you cut down on expense reports and are better able to manage the budget.
They also offer an integration which allows you to request and send funds via Slack.
Building Business Credit With Divvy
Building business credit is still possible with Divvy also. They have more than one way of underwriting, so if you do not qualify with traditional underwriting, they can look at other factors for approval.
These might include annual revenue, time in business, or any number of other factors.
Divvy Business Credit Builder
Also, those that do not qualify for a traditional Divvy card have another option. The traditional card draws from an unsecured line of credit.
If your company is not approved for this, it may qualify for their Credit Builder Program.
It works similarly to the original platform. However, the card is pre-funded. You still get all the money management options, but you do not have new funding. It’s like a prepaid debit card.
Yet, as you build credit with the program, you can become eligible for the Divvy unsecured line of credit in the future.
Ramp is another option similar to both Brex and Divvy. It offers many of the same money management options, but it is unique in that it is designed to help reduce spending.
Ramp reports to the major business credit reporting agencies.
Expensify is another option that you may be able to use instead of Brex. It offers a 4% cash back charge card. They draft payments from your bank account, making it more like a debit card.
Since they do this on a daily basis, there is no interest, and employees cannot spend more than the amount in your account. You can set a spending limit per employee card just like other options.
Expensify doesn’t really help with building business credit.
Next Steps For Companies Losing Their Brex Account
Brex grew too fast and wasn’t able to maintain the level of service each customer deserves. Imagine one customer base on your left side and one your right.
Now imagine trying to meet the completely different needs of both sides at once.
This is what Brex was doing, and they realized they were actually failing both sides in doing so. They made a decision and they are moving on. So where does that leave the side that small businesses are on?
It leaves them needing to find another option. Visit the sites of those mentioned above and other possible money management systems.
Choose the one that will work best for your needs. Then, hunker down and start the migration process. It’s all you can do.
Credit Suite Can Help You Find More Funding for Your Company and Build Business Credit Faster
In the meantime, contact Credit Suite. We have strong relationships with lenders that allow us to help you find funding you can use right now.
We can help you find the best funding options for your business to help you serve your customers better.
Even better, our business finance specialists can help you assess where you are on your business credit journey, and start you on the fastest and most effective road to building strong business credit for your company today!