Brex: A Platform for Businesses to Consolidate Credit Cards, Cash Management, and Reporting

In a Nutshell: Companies today operate differently than companies of the past. Fast-paced startups are often dependent on modern technology that helps them grow rapidly and pivot at a moment’s notice. But traditional financial structures haven’t necessarily kept pace with these young businesses. Brex offers a fintech platform designed with modern startups in mind. The platform allows new companies to more easily secure a credit card to begin spending. And the Brex Cash product pulls it all together to essentially provide all of the functionality of a traditional bank while understanding the needs of today’s businesses.

Many businesses today are built on technology that did not exist just 20 years ago. These startup companies move quickly, adapt to change, and strive to meet both business and client needs.

Yet, when it comes to financial management, these companies are often tethered to legacy systems that aren’t suited for today’s fast-moving, tech-based business world.

Brex is a company that understands these challenges and offers modern solutions to meet the needs of businesses today.

The company was founded by Henrique Dubugras and Pedro Franceschi, two successful entrepreneurs who created Pagar.me, one of the largest payment processing companies in Brazil.

“The experience taught them a lot about fintech and finance, and the flaws in the system and the opportunities that exist as well,” said Larissa Rocha, Tech Business GM for Brex. “They understood how transformative it could be to businesses if they addressed these flaws and pursued the opportunities. It’s something we’re all very passionate about.”

So Dubugras and Franceschi used these experiences and the expertise they gained to build Brex as an efficient and valuable platform for today’s growing businesses.

From innovative approaches to cash management, business credit cards, and reporting, the platform has been a hit with thousands of companies around the world.

Rocha discussed the Brex platform and the benefits it delivers for modern businesses.

“We’re reimagining financial systems so every growing company can realize their full potential,” according to Brex.

Rocha said that Dubugras and Franceschi realized that, based on their experience, more than 50% of a startups’ monthly spend requires a credit card. And they were met with their own challenges when they attempted to secure a business credit card.

“Every single bank turned them down. They said the new company needed to have a financial history,” Rocha said. “They said, ‘Well, we just incorporated. We don’t have a history let alone a financial history. But we have this seed investment in the bank sitting there ready to be used. We don’t need credit. We just need a payment instrument.’”

This is the reality for many startup companies, she said.

That’s why the Brex founders made it a top priority to create credit cards that startups can actually acquire and use.

“They wanted to start by fixing this problem of access to credit cards for these companies,” Rocha said. “And then, by looking at the problem they realized there was so much more that could be done. So that’s where we’ve tailored rewards to be relevant to these growing businesses.”

The Brex credit card is engineered to not only give tech startups access to a credit card, but it is also designed to help businesses grow.

“Stay agile with flexible limits and no personal guarantee,” according to the company. “Get a card with 10 to 20 times higher limits than traditional business credit cards while keeping your personal credit protected. Monthly statements. No personal guarantee, no fees, no interest.”

She said Brex not only improved the way startups can gain access to a credit card but it also improved how they can use the cards and reporting systems via the level of information available and the details of the transactions.

“Chase the right kind of paper with built-in expense management, automatic receipt-matching, and instant virtual cards for your team,” according to the company. “Close the books in record time with QuickBooks, Xero, NetSuite, Concur, and Expensify integrations.”

Rocha said thousands of growing businesses now use Brex.

“We have a lot of U.S.-based entrepreneurs and companies,” she said. “But it’s appealing to both the American entrepreneur and the international entrepreneur because both are escaping this personal guarantee issue.”

Even companies that already have access to a credit card see the value in switching to Brex, she said, because of the platform’s functionality and how much time it can save.

“That’s a huge, huge part of how and why we get these customers,” Rocha said.

The Brex platform essentially functions like a bank, but without many of the challenges, the traditional banking system presents to modern companies.

“Your business is smart. Why isn’t your bank?” according to the company. “Brex is like a bank account — without the fees or limits. Get an account number, routing number, credit cards, and more in one place.”

Businesses can conveniently open a Brex account online, and, as with traditional financial institutions, the company is FDIC-insured.

“Protect your cash with FDIC insurance up to $250,000 offered through Brex Cash program banks,” according to the company.

“The small businesses of the future are looking more like startups, and banks can’t build what they need,” according to Brex. “To realize their potential, they need products that empower this new way of thinking and keep them moving. You should be able to sign up for a credit card and bank account like you set up an email address — in minutes, all online.”

While credit cards were Brex’s most urgent priority when the company launched, Brex Cash is what makes the platform an all-in-one solution for so many businesses.

“You don’t need separate bank accounts, credit cards, and expense software if you have Brex,” according to the company. “Make deposits, payments, and tracking easy — with no minimums, no transaction fees, and no limits.”

Clients can open a Brex Cash account completely online with no personal credit check.

“From there, it’s free to send ACH and wire transfers — even internationally,” according to Brex. “To spend funds, Cash comes with a credit card that’s paid daily and earns you cash back each time you pay.”

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Rocha said Brex is leveraging its Cash product to help make its industry-specific products even better. And it’s also helping the company expand into new markets because the platform is able to solve a lot of pain points across an array of industries.

“Power your dreams. Get a cash management account and credit card with no personal guarantee in one place,” according to Brex. “Manage your business cash with confidence. You can move a percentage of your cash to a money market account to earn yield or store deposits at one of our program banks”

Brex customers can also get instant payouts on ecommerce sales.

“With Brex, you won’t need to wait days or weeks to get paid,” according to the company. “Get instant access to your Amazon and Shopify revenue so you can buy ads, stock inventory, and make more sales.”

Ultimately, Brex’s credit card and Cash products work together to make life easier for finance teams as they can manage card spend and payments in one place for easy expense reviews and approvals.