What Is Brex Cash, and How Does It Work?

For the past few years, Brex has shone brightly as a rising star in the fintech industry. The company’s main draw? Ultra-rewarding business credit cards with loads of benefits and no personal guarantee necessary.

Recently, however, Brex has decided to spice things up. Rather than focusing solely on corporate credit cards (though they’re still available), the startup now aims to deliver a more comprehensive money management experience via Brex Cash.

Marketed as a business cash management account, Brex Cash is a multifaceted alternative to the traditional business bank account. Users can store and send money for free, allocate cash to money market accounts to earn yield, and track finances with an arsenal of expense management tools. Brex Cash customers also reap many of the same benefits that longtime Brex cardholders have likely grown accustomed to, from spending rewards to simple integration with popular enterprise business tools.

Is Brex Cash the money management tool your business has been aching for? We’ll parse the details to help you find out.

What Is Brex Cash, and How Does It Work?

Brex Cash, as described by Brex itself, is “a bank account alternative.” So it’s not technically a traditional bank account, but it serves many of the same purposes: Brex Cash allows businesses to store, invest, spend, and track money.

When you store unallocated funds with Brex Cash, the money is transferred to one of the company’s program banks. There, it receives the expected FDIC insurance coverage (up to $250,000). If you’d prefer to invest, Brex Cash also allows you to place cash in a money market mutual fund to earn yield. Up to $500,000 of your invested cash is covered by SIPC if the applicable firm fails. There’s no minimum deposit, no matter how you allocate your funds, which makes the Brex Cash product available to small businesses — a first for the technology company.

You can then spend your uninvested cash with the included Brex Daily Card, which is automatically paid off daily. The card earns rewards in a variety of categories, and it’s considered a credit card despite the automatic payment setup, so you’ll still be building business credit when you use it.

Prefer a longer payment term? You can always choose the Brex 30 Card instead. It gives you a month to pay off your card balance, but it also requires a much larger minimum bank account balance (min. $50,000 in the bank for venture-backed companies, $100,000 otherwise). Take note that the Brex 30 is available without Brex Cash, though the Brex Daily is not.

Beyond storing and spending your money, Brex Cash also encompasses a host of forward-thinking expense management tools, like intelligent receipt reconciliation and in-depth payment controls.

How Do You Get Brex Cash?

Applying for Brex Cash is easy. Go to the Brex website and click “Get started” or “Open an account,” then create your account. Provide the requested information — company name, website, type, and industry — then click “Apply.”

Before applying, consider the following applicant criteria:

• You’ll have to provide an EIN (Employer Identification Number) and a business email.
• Consumers, sole proprietors, unregistered businesses, and other non-individual liability companies aren’t eligible for Brex products. Only C-corp, S-corp, or LLC businesses are eligible.
• Companies that apply must have been incorporated in the U.S., but founders don’t have to be U.S. citizens.

Then, once you apply, you’ll have to choose from three different product configurations. Depending on your choice, you may have to meet additional requirements:

• Brex Cash only (there’s no minimum deposit, and the account comes with a Brex Daily Card)
• Brex Cash with a Brex 30 Card (min. $50,000 in the bank for venture-backed companies, $100,000 otherwise)
• Brex 30 Card only (min. $50,000 in the bank for venture-backed companies, $100,000 otherwise)

Pick which you prefer, and Brex will guide you through the rest of the process accordingly.

Read more
Can You Apply for a Small Business Credit Card With Only Your EIN?

Access your money with the Brex Daily Card, which is paid automatically, every single day, via the funds in your Brex Cash account. Alternatively, choose the Brex 30 Card for a 30-day payment period with modified rewards (more on Brex’s rewards programs below).

Instant Virtual Credit Cards

Can’t wait for your physical credit card to arrive? Make purchases as soon as you’re approved by setting up a virtual card with a custom limit. Randomly generated credentials help keep credit card fraud at bay.

Statement Credits and Discounts

Brex delivers a hearty helping of statement credits and discounts for several popular business tools, including:

• $5,000 credit and up to $100,000 in AWS Activate (if eligible) for Amazon Web Services
• 25% off a year’s worth of eligible Slack paid plans
• 20% discount on your first year of Carta (plus waived implementation fees)
• 20% annual Zoom subscription discount
• 40% off your first year of QuickBooks
• Up to $150 in Google Ads credit
• 50% of all Dropbox Business, Standard, and Advanced plans
• 50% off any Gusto plan for 12 months
• Up to 60% off TriNet Full Service HR administrative fees
• 25% discount on your first consulting engagement with Clora
• Up to $10,000 in Quartzy credits
• Automatic 5% rebate on Microsoft ads
• 25% off your annual Monday.com subscription
• Discounted 3-month DoorDash starter package

Spend Management Features

Brex Cash simplifies expense management with several built-in features.

Photographic receipt collection, for example, eliminates the need for physical receipts, automatically connecting every receipt you upload with its respective expense(s). Custom transaction approval flows help ensure your money’s only going where it’s meant to. You’ll automatically be alerted if any transactions are missing receipts, or if a transaction requires your attention.

ERP and Accounting Software Integration

Automatically connect Brex Cash with your favorite accounting tools, including QuickBooks, NetSuite, Expensify, and more to streamline your bookkeeping without sacrificing the software you’ve come to love.

Mobile Accessibility

The Brex mobile app allows you to check balances, upload receipts, and access your Brex cards whether you’re working from the office or traveling on business.

Security

Tackle suspicious account activity with automatic fraud alerts and easily accessible fraud support. As with most major credit card issuers, Brex won’t hold you liable for fraudulent charges, and will automatically credit your account for any suspicious transactions or chargebacks.

How Does the Brex Daily Card Work?

The included Brex Daily Card is arguably one of the more interesting elements of Brex Cash. Business credit cards available without personal guarantees have never been common, and the Brex card’s generous rewards program helps it stand out even further. But it’s important to remember that it works differently than your everyday business credit card.

For one, there’s no credit inquiry required to apply. Your eligibility for Brex is dependent on your business’ financial situation, not your personal or business credit scores. That’s worth noting because the card still helps you build business credit; your payment information is reported to Dun & Bradstreet and Experian.

Secondly, while the card is technically a credit card (and it therefore features the credit-building benefits and additional protections typical of credit cards), your card balance is paid daily from your Brex Cash account by default, like with a debit card. This has both perks (you can’t miss a payment since everything’s automatic) and drawbacks (you can’t take a month plus to pay for something, like you can with a traditional business credit card).

Another difference between the Brex Daily and most business credit cards? Your credit limit is 80% of your Brex Cash balance, so there’s no guesswork as to how much you’ll be able to spend once you get your card.

Aside from that, the Brex card works like your everyday credit card. Use it to make business purchases, and you’ll amass rewards that can be redeemed for cash back, travel and more. The card also comes with World Elite Mastercard benefits, including cell phone protection, discounts on popular software (TurboTax, QuickBooks, etc.), and rental car insurance. And there’s no need to worry about account fees — like late fees or foreign transaction fees — because there simply aren’t any.

If you’d prefer a longer billing period, you can instead opt for the Brex 30 Card, which gives you a full 30 days to pay. The Brex 30 Card is actually available without Brex Cash, while the Brex Daily Card is not. The main downside to the Brex 30 is that it requires applicants to meet much stricter financial standards — you need at least $50,000 in the bank if you’re a venture-backed company, or $100,000 in the bank if you’re not.

The Brex 30 also earns one point fewer in most reward categories, but that’s not a huge deal, given how generous Brex’s reward rates are by default.

Brex 30 Card

Min. credit levelEligibility determined by business financials

Details

Annual Fee$0

Regular APRNot Applicable – Paid in Full Monthly

• Choose either Tech Rewards, Life Science Rewards, or Remote Workforce Rewards
• $5,000 in Amazon Web Services credit over a year
• $150 in Google Ads credit
• 5% rebate on Microsoft ad products
• 50% discount on all Dropbox Standard, Business, and Advanced plans
• 20% discount on annual Zoom subscription
• No foreign transaction fee
• No annual fee
• Minimum of $50,000 required in bank account for venture-backed companies; $100,000 otherwise
• Not available to consumers, sole proprietors, unregistered businesses, and other non-individual liability companies

The Brex Tech rewards program is most valuable if you’re a frequent business traveler (explore the full list of our favorite business travel cards if that’s what you’re looking for).

Its Apple and software categories can net you solid rewards too, however, even with lower rates — enterprise software subscriptions are pricey.

Brex for Life Sciences

While still rewarding for business travelers, Brex for Life Sciences features industry-specific rewards categories that you’re unlikely to find elsewhere.

Brex for Remote Work

The COVID-19 pandemic triggered a massive shift toward remote work, and many companies — Brex included — have developed new features to complement the remote landscape. Rewards for collaboration tools and food delivery services are a natural fit.

The Bottom Line

Balancing innovative technology with an impressive selection of user-friendly features, Brex Cash is truly a tool for the modern businessperson. It won’t necessarily fit every business, but if you’re into the idea of consolidating your expense management tools and earning generous credit card rewards without going through the regular credit card application process, it might be worth your while.

Already a Brex Cash customer? Let us know what you think below, or tell us if you think we’ve left out a crucial detail.