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Updated on Tuesday, December 3, 2019
If you’re looking for a corporate card that doesn’t require a personal credit guarantee, and your company makes at least $100,000 in monthly sales, the Brex For Ecommerce could be a good fit. It charges a $0 annual fee and offers 60 days to repay what you charge interest-free.
This card is issued by Emigrant Bank, Member FDIC, the same issuer that offers the Brex For Startups, which aims to offer credit to businesses that might struggle to access traditional corporate credit cards. The Brex For Ecommerce also targets a unique niche; it’s seeking to provide flexibility and convenience for online businesses that have a short-term financing need.
Let’s take a closer look at the details so you can decide if this card is right for your business.
Where the Brex For Ecommerce stands out
No personal guarantee. Most small business credit cards require a personal credit guarantee — meaning that you, the business owner, are ultimately responsible for your business’ debt. And if you fall behind on payments, your personal credit score will get dinged. But there’s no personal liability involved for the Brex For Ecommerce.
Potentially high credit limit. Your credit limit can be up to 75% of your projected monthly sales, and the maximum credit limit is $5 million.
No interest for 60 days. If you need a bit of flexibility to manage your expenses, this card offers it. You have 60 days from the transaction date to pay off what you charge to this card, and you won’t accrue interest charges like you would with a normal credit card as the balance is due in full after 60 days.
Build business credit. If you want to build your business credit history, this is a good card to have. Brex partners with credit companies Dun & Bradstreet and Experian. Building business credit can help you down the road if your company needs to apply for loans or other financial products.
Partner discounts. When you get the Brex For Ecommerce, you can get exclusive discounts on Google Ads, Amazon Web Services, WeWork, Zendesk, Sendgrid, Salesforce, Instacart, Postscript and more.
Virtual cards. If you’re approved for the Brex For Ecommerce, you’ll get a virtual card instantly. You can also issue virtual cards to company employees and set spending limits.
Where the Brex For Ecommerce falls short
No rewards. Unfortunately, this card doesn’t offer rewards. If you’re looking to earn cash back or travel miles, you’ll need to look elsewhere.
Can’t carry a balance. This is a charge card. You have 60 days to pay off charges, and when they’re due they’re due in full.
Barriers to applying. There is a minimum money sales volume of $100,000 required to be eligible for this card. Some small businesses likely won’t meet that threshold, and may be better suited for a traditional small business credit card.
In addition to the income requirement, your business must have been in operation for at least one year in order to be eligible for the Brex For Ecommerce.
Finally, if your business is structured as a sole proprietorship, you won’t be able to get this card.
Compare it with the Ink Business Cash℠ Credit Card
If you’re a small business looking to earn rewards and carry a balance longer than 60 days, the Ink Business Cash℠ Credit Card might be a better option.
Here’s how the two cards compare:
|Brex For Ecommerce||Ink Business Cash℠ Credit Card|
|Rewards||None||Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.|
|Sign-up bonus||75,000 in Brex Rewards points upon signup and waived card fees for life (equal to $750+ value)*||Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening.|
|Purchase APR||N/A||Intro 0% for 12 Months on purchases. After that a 14.74% - 20.74% Variable APR applies.|
|Balance transfer APR||N/A||14.74% - 20.74% Variable|
|Foreign transaction fee||None||3% of each transaction in U.S. dollars|
The Ink Business Cash℠ Credit Card also offers 0% for 12 Months on purchases for a year. This is helpful if you want to make a large purchase and pay it off over time without accruing interest charges.
There’s no doubt that the Brex For Ecommerce is good for filling the niche its aimed at. However, only you will be able to determine whether that niche is the best for your business needs.